Importance Currently, profit is a preferential indicator to evaluate business operations of industrial enterprises, however the distribution of value added remains critical at all levels and areas of the social life. Measurement of value added represents a certain algorithm, which helps to assess elements of value added and their total. Objectives The research examines the way elements of value added and sectors are related. We also outline theoretical principles and carry out a practical analysis of the formation and utilization of value added so to improve the performance of diversified enterprises in Russia. Methods We apply mathematical modeling in economics to evaluate the sectoral specifics of the formation of value added. Results We look through the economic literature on the measurement of value added, determine the specifics of this process in an industry, analyze the structure of value added among sectors for the given period. Value added influences the development of diversified enterprises in Russia. As the most critical indicator of the economic development, value added reflects results of economic agents, reasonableness of funds and resources utilization. Conclusions If the value added is used as the unified general indicator, it will underline the nexus among income, consumption and accumulation through the mechanism of internal business funds.
Keywords: value added, industry, addition method, subtraction method
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