In manufacturing,the ________ is the gross value of the product minus the costs of raw materials and energy.
A) purchasing power
B) value added
C) impact factor
D) productivity
E) profit index quotient

Question

Quizplus · Accepted Answer

Value added is the amount by which the value of the product is increased during the production process. It is calculated by subtracting the cost of raw materials and energy from the gross value of the product. This value represents the contribution of the manufacturer to the final product and is an important indicator of the economic performance of the manufacturing sector. Therefore, the best choice given the given options is B) value added.

In Manufacturing,the ________ Is the Gross Value of the Product