Which of the following defines 'value added'?
A) the difference between the (comprehensively accounted) value of a firm's output and the (comprehensively accounted) cost of the firm's inputs
B) the difference between exchange value and surplus value
C) that value which is captured at the point of sale.
D) all of these

Question

Quizplus · Accepted Answer

Value added is the difference between the value of a firm's output and the cost of its inputs. It measures the contribution of a firm or industry to the economy and represents the increase in economic value created in the production process. Options B and C do not accurately define value added.

Which of the Following Defines 'Value Added