Value Added (VA)

It is the income generated by the company in the development of its current activities (the production of goods and services), being the basis of the distribution of income, since its balance is distributed between the employees (personnel expenses) and the company itself (gross operating profit or gross surplus). Added value is called factor cost because it is obtained by the difference between production at producer prices and intermediate consumption valued at purchase price (including indirect taxes paid by the company). The balance for this item should be positive.