value added (CO-OM-ABC)

Activity-Based Costing (CO-OM-ABC)

The difference between the value of goods produced and the cost of materials used in producing them (Samuelson, Economics).

In the SAP R/3 System, this indicates whether a business process is relevant to, or has a deciding influence on, the production of a product or service. The degree of influence on the value added is illustrated by means of a ranking order.