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Z94.15 - Organization Planning and Theory

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VALUE ADDED. This is one measure of general output. The basic calculation of Value Added is Net Sales (or Value of Production) less Outside Purchases (and Expenses). It is used in the labor productivity measure which is the basis for the Rucker Plan and, in Great Britain, the Bentley PAR (Performance, Achievement, Recognition) plan. (See PRODUCTIVITY GAINSHARING.)

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