How is double counting in the value-added approach to GDP statistics avoided?

Question

Quizplus · Accepted Answer

Double counting is avoided in the value-added approach to GDP statistics by counting only the value added at each stage of a good's production process. This means that only the value of the final good or service is counted, not the value of intermediate goods or services that were used to produce it. By avoiding the counting of intermediate goods and services, double counting is prevented.

How Is Double Counting in the Value-Added Approach to GDP