Prerequisites for the emergence and definition of the added value of enterprises

In modern economic conditions, added value is subject to in-depth study both in Ukraine and abroad, but there is no clear formulation of this concept, as well as its content and composition and methods of calculation.Value added is part of the value of a product that was created in this organization, the difference between the value of sales and purchased goods and services.A prerequisite for its occurrence was the formation of class employees, free, but devoid of ownership of the means of production and manufactured product. They needed to sell their labor to obtain the necessary benefits for themselves and their family members.The process of adding value goes through three stages: pre-production (standardization, research and development, design, development of own design solutions), production (production, assembly) and post-production (logistics, marketing, brand formation). Participation in the first and third stages according to expert estimates brings companies higher incomes than participating in the second stage of production.The work carried out in the work on the definition and composition of this category proved that the value added is the balance (difference) between the amount of investments for the purchase of raw materials and materials for the production of products, the cost of work of employees, their intellectual capital and the profit from its implementation.Intellectual capital, intangible assets of the enterprise are among the most important levers that form the basis of its added value, increase the capitalization of the company, the company, which allows the most valuable of them to participate in the annual ratings of competitiveness and cost of capitalization of the most valuable brands of the world.To measure economic profit, there are several similar economic indicators, the most popular of which was the criterion of economic value added (economic value added - EVA), defined as the difference between the net (after deducting taxes), the enterprise's income from operating activities and the cost of investing capital. The positive value of EVA in the analysis of any period of the enterprise indicates its value increase, the negative says the decrease in the value of the enterprise.