When computing value added for a firm, the costs of materials purchased are deducted but the costs of labor employed are included.

Name: When computing value added for a firm, the costs of materials purchased are deducted but the costs of labor employed are included.
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Quizplus · Accepted Answer

The value added of a firm is calculated by subtracting the cost of materials purchased from the revenue generated. However, the cost of labor employed is included as it contributes to the creation of the final product or service.

When Computing Value Added for a Firm, the Costs of Materials