Value added is
A) the price of an intermediate product.
B) the amount of dollar value contributed to a product at each stage of its production.
C) the sum of the prices of intermediate products.
D) the dollar value contributed to a product at the last stage of its production.

Question

Quizplus · Accepted Answer

Value added is the dollar value contributed to a product at each stage of its production. It is the difference between the cost of inputs and the price of the finished product. Value added reflects the amount of value created by a particular activity or industry, and is used as a measure of economic performance.

Value Added Is