Which of the following refers to value added?
A)Describes the difference between the cost of outputs and the value of price of inputs
B)Describe the similarities between the cost of inputs and the value of price of outputs
C)Describes the difference between the cost of inputs and the value of price of outputs
D)Any of the above depending on the situation

Question

Quizplus · Accepted Answer

Value added refers to the difference between the cost of inputs (raw materials, labor, etc.) and the value of price of outputs (finished goods or services). Therefore, the correct option is C, which describes the difference between the cost of inputs and the value of price of outputs. Option A is incorrect because it describes the cost of outputs, which is not the same as value added. Option B is incorrect because it suggests that there is no difference between inputs and outputs, which is not the case. Option D is also incorrect because the definition of value added is specific and only applies to option C.

Which of the Following Refers to Value Added