"Value added" is defined as
A) the price of the product multiplied by the quantity produced.
B) total sales revenue divided by the quantity produced.
C) total sales revenue minus sales taxes.
D) the value of total product minus raw materials costs.

Question

Quizplus · Accepted Answer

"Value added" refers to the additional value created in a product at a particular stage of production, which is calculated as the value of the product minus the cost of raw materials used to produce it. This concept is crucial in understanding how much value is being added at different stages of production or by different sectors of the economy.

"Value Added" Is Defined as