Value added is a term in financial economics for calculating the difference between market value of a product or service, and the sum value of its constituents.
[1] It represents a market equilibrium view of production economics and financial analysis.
One may describe value added with the help of Ulbo de Sitter's design theory for production synergies.
Parts can be compared to timeline stages, such as first preparing the dish, then washing it, then drying it.
Additionally, this enhancement also helps distinguish the company's products from those of its competitors.