Creation of value is the original goal of productive activity. This transforms existing goods into goods with higher use and thus - in a money economy - into goods of higher monetary value. The created increase in value becomes incomes.

Creation of value as characteristic number measures the yield of gainful occupation as difference between the achievement of a restaurant unit and the payment in advance used for achievement production.

Creation of value = production value - payment in advance

Term explanations

The used terms are to be understood as follows:

Creation of value is at the same time the sum of all incomes, which develop from an economic activity. It measures thereby the distribution clearance for the rightful ones.

Computation of the creation of value in the VGR

The gross value creation (gross = including the writings-off) can take place in accordance with the developing calculation (see there).

Gross value creation

- writings-off

= net value creation

- employee payment

= operating surplus and/or independent income

In these gross sizes (gross = before departure of the taxes) are contained:

The direct taxes and the contributions for social security.

The sum of the gross value creations of all restaurant economics of a marketing area (national economy) is the gross domestic product and/or the resident population of a marketing area the gross national income or (less the writings-off and the production taxes plus the subsidies) the national income.

In the illustration the gross national income is equal 100% set and with its income components represented. The net value creation sits down from all sizes together except the writings-off (highest lila row) and the production taxes less the subsidies (secondaryupper row). If one adds the writings-off to the net value creation still, then one receives the gross value creation. (In practice first the gross value creation is determined, and then the writings-off are taken off to receive around the net value creation, the national income.)

Computation of the creation of value with the cash-flow per coworker

The creation of value is expressed often also with the cash-flow value. The cash-flow value divided by the number of coworkers of an enterprise is the fundamental characteristic number for the computation of the creation of value of the enterprise in the concept of the creation of value delivery.

See also

Controlling, creation of value delivery, cash-flow

as well as:

Original value (marxism)

Literature

• Haller, Axel: Value creation calculation. Poeschel, Stuttgart 1997 ISBN 3-7910-1150-2

Related links

• Important VGR connections of the StBA explains

Articles in category "Creation of value"

We found here 36 articles.

Related Websites

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