Best Value Added Statements Homework Help
Value added statements are the financial statements which shows how much wealth has been created by an organization or any company through the utilization of its capacity, manpower, capital and other resources with the utilization and allocation of resources among employees, lenders, shareholders and government in an accounting period. In the economics language, sum of the unit profit with the depreciation cost and unit labor cost is known as the unit value added. The total value added is the sum total of all value added unit per unit over all units sold.
Another explanation of Value added which is outside economics refers to extra features or quality of any item of interest that goes beyond the standard expectation and supplies more satisfaction. Even if the price rate of the product is high for the customer, value added feature give competitive edge to companies with more expensive products.
Value added is classifies into two categories:
• Gross value added : It refers to sates plus income from other services which is less bought in materials and service purchased from outsiders.
• Net value added: It mainly shows the difference between Gross value added and Depreciation. It is actually the sum total of the value added to the employees, to providers of loan capital to Government and owners.
The concept of value adding basically comes from manufacturing processes where the firm’s raw material is converted into finishes and readymade products. Manufacturing companies begins from the quantum of raw materials and then it engaged itself into other business processes. From other economists, value added is defined as the difference between the value of output produced by a firm to value of input purchased from other firms.
Value Added = Value of Output – Value of Inputs
Value added statement assignment help is prepared for the computation of the amount of value added and its distribution. It is the statement which shows the income of the company and how it is divided between the employees.
The Format of Gross Value Added Statement is as follows :
|Less: Cost of bought in goods and services||XX|
|Gross Value Added||XXX|
|Application of Value Added||% of Value Applied|
|To Pay to Employees of Organization (Employee Benefits)||XX||XX|
|To Pay to Providers of Long Term Finance (Creditors and Lenders)||XX||XX|
|To Pay to Government (Taxes )||XX||XX|
|To Pay to Shareholders||XX||XX|
|To Pay to Entity||XX||XX|
|To Pay regarding Depreciation||XX||XX|
The Only Difference between Gross Value Added Statement and Net Value Added Statement is that instead of Showing Depreciation as an application of money , it will be added in the Value of Cost of Bought in Goods and Services in Case of Net Value Added Statement .
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Value added statement aims towards supplementing a new dimension to the existing system of corporate finance accounting and reporting. It discloses the additional information regarding the amount of profit earned by a company and its distribution among all the stockholder’s. Students and clients today want to understand the advantages of Value added statement numerical help. As value added is a subject of finance, it needs value added statement numerical help. Our company is number one in providing value added statement assignment help. We also provide value added homework help to students of every level either they are from college or university. So, if student need value added statement homework help, they can click our website any hour of the clock.