2. When should the direct value-added method be used?
VAD is the economic image of what happens in the world of what we have called the production structure, which is in fact, in the broadest sense, the physical domain of the company.
The company's function is to sell products and/or services to customers, based on goods and/or services purchased and transformed.
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When should the direct value-added method be used?
How to use VAD as a performance indicator
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.
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