Why is value added considered as a measuring instrument?

Issue long-term debt to buy inventory Because this is the only one which will increase current assets without increasing current liabilities. Current Ratio = current assets /current liabilities ‎

 being a product whose value has been increased especially by special manufacturing, marketing, or processing value–added goods

Agreed with the answer, Mr. Sulayman

Thanks for invitation,

As a matter of fact, "Value added" are reflected in the "Return On Equity".  

 

Value added is the amount left over after materials and overhead costs have been deducted from sale. _Calclulating value added does not the organization compare its performance with other ci_operatives of traditional companies. _There are many measures : *Value added per worker *Value added turnover *Value added net assets