1. What is direct added value (DAV)?
Some of the economic quantities used in the following sections come from general company accounting. They are explained in the glossary.
For a product and/or service, direct value added (DVA) uses two classic accounting data:
selling price (PV) ;
the purchase cost of incorporated goods and services, or direct consumption (DC), by linking them with the equation :
VAD = PV - CD (equation 1)
Semantics: the terms "product", "good" and "merchandise" are equivalent. They refer to "production" in the broadest sense.
In the 21st century, a product sold is almost always associated with a service:...
The Ultimate Scientific and Technical Reference
This article is included in
Design and engineering management
This offer includes:
Knowledge Base
Updated and enriched with articles validated by our scientific committees
Services
A set of exclusive tools to complement the resources
Practical Path
Operational and didactic, to guarantee the acquisition of transversal skills
Doc & Quiz
Interactive articles with quizzes, for constructive reading
What is direct added value (DAV)?
When should the direct value-added method be used?
Everything you need to know about VAD direct added value
The concept was conceived and developed by Paul-Louis Brodier, an Arts & Métiers engineer and economist.
The VAD approach goes much further than what has been presented above, and covers all economic systems right down to a nation's GDP.
The vadway.com...
Bibliography
Also in our database
Tool
The Ultimate Scientific and Technical Reference
