Information systems help: what is the meaning of value added process,?

Question

Our teacher tried to explain this in class but I did not understand. Can you explain and give a few examples.

Answer 1

A value added process is anything done to a product at any stage of production that adds value to the final product. You can even add value through marketing or a brand name. You take any raw material, like plastic, and use the plastic to produce a toy. At each step in the production process, from molding through packaging, value is added. The plastic after production is worth more than the raw material that you start with. I think that's the concept you are describing, right? Also, branding your product with a name like Sony or Nike adds value because of the brand image those names have.

Answer 2

Value added refers to the additional value created at a particular stage of production or through image and marketing. In modern neoclassical economics, especially in macroeconomics, it refers to the contribution of the factors of production, i.e., land, labor, and capital goods, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The factors of production provide "services" which raise the unit price of a product (X) relative to the cost per unit of intermediate goods used up in the production of X.
For example, making apples into apple juice increases the value or price beyond that of the unprocessed apples. Organic has more value or price than produce that is not produced organically. In this case, value is added because the identity of the product is preserved--it is not simply an apple, it is an organic apple. Another example of value added in this way is fair-trade coffee. There can also be a value added to a product when the market for the product increases, giving the producer an added value for the product due to the greater demand. Renewable energy produced on farmland is another source of added value, such as converting manure to methane for fuel.

Answer 3

try here htttp://en.wikipedia.org/wiki/Value_added
refers to the additional value created at a particular stage of production...............
ex: 1000 yen of miso soup is produced by chef.......