This Value Added Excel Template is a free tool provided by the Corporate Finance Institute. It will help you understand the important concept of Value added for Finance and Accounting.
Here is a snippet of the template:
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Value Added is the extra value created over and above the original value of something. It can apply to products, services, companies, management, and other areas of business. In other words, value-added is the enhancement made by a company/individual to a product or service before offering it to the end customer.
The Gross Value Added (GVA) helps to measure the contribution to an economy of an individual sector, region, industry, or producer. In, other words GVA helps to measure the gross value-add by a particular product, service, or an industry. GVA is important because it helps to calculate Gross Domestic Product, which is a key indicator of the state of the nation’s total economy.
GVA can be calculated using the Value Added Statement (VAS).
Net Value Added can be calculated by subtracting Depreciation from Gross Value Added.
CFI is the leading global provider of financial modeling courses and financial analyst certification. To continue developing your career as a financial professional, take a look the following additional resources, which discuss various aspects of business costing:
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