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To put it simply, it is caused by supply and demand, and it is also a problem of market demand.
Unprocessed goods are in low demand and account for only a small part of the market. **Can't go up.
The demand for processed goods is large, accounting for the vast majority of the market. Naturally, it went up.
For example: wood, there are very few direct requests for wood on the market.
After various processing links, wood becomes furniture, building materials, and all kinds of goods. There will be more demand, and ** will come up.
Hope it helps.
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Processing requires manual operation or mechanical operation, which is invested in the cost, and the cost is invested in the product, so the product will increase in value after processing.
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So you might understand that if you sell corn, you sell corn on the cob, so what you get is the original value of the corn, and if you buy a machine and process the corn into bags and sell it, will you still sell the original **? That's not to pay for death. You're not full and have nothing to do, are you??
In the process you put in the effort, the machine, the packaging material, etc... The ** of this process product came up. The process of processing is the process of adding value to the product...
Of course, there are also products that are increasing in value without processing, such as antiques, which are also increasing in value over time if you don't process them. This kind of value-added is not the same as processed products, it is a kind of value-added of culture, or artistic value. Maybe you bury something now, and it will increase in value in thousands of years.
It's about the same as venture capital.
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Because the market demand for some materials is not high, it often needs to be put into the market after processing, to meet the needs of the market, in the process of processing, it is necessary to invest in the cost of various processing, since the cost is increased, and to meet the market demand, so its value is higher than before processing, I hope to help you!
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Because after a link, the product has changed, each link has material costs, labor costs, management costs, enterprises can not 0 profit production, so, after a processing link, there is value-added.
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Because after the processing link, the cost of the finished goods increases, so it is said that the goods are value-added. This includes labor costs, depreciation of machines and other related expenses into the cost.
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Value-added tax (VAT) refers to a turnover tax levied on the basis of the value-added amount generated by goods (including taxable services) in the process of circulation. It is a kind of turnover tax levied on the added value of multiple links in the production, circulation, and labor services of commodities or the added value of commodities. The scope of the levy involved:
1. Generally, it includes: sales (including imports) of goods; Provide processing and repair services. 2. The special projects of the clan laugh are:
goods** (including goods** and *****); the business of banks selling gold and silver; pawnbroking business for the sale of dead pawn items; The consignment business sells consignment items by the consignor; The production and allocation of philatelic commodities and the sale of philatelic commodities by units and individuals other than the postal department. 3. Special behaviors are regarded as sales: handing over goods to others for sale; selling goods on behalf of others; moving goods from one place to another (except in the same county or city); the use of self-produced or commissioned goods for non-taxable items; the use of self-produced, commissioned processing or purchased goods as an investment in other units; distribution of self-produced, commissioned processing or purchased goods to shareholders or investors; use self-produced or commissioned goods for employee welfare or personal consumption; Give away self-produced, commissioned processing or purchased goods to others free of charge.
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