If a chef and her equipment transform $50 worth of raw foodstuff into a meal with a total value of $150,
A)The resulting output would be measured as the $150 total value
B)The resulting output would be referred to as an intermediate product
C)The resulting output would be measured as the $100 of value added
D)The resulting output would be measured as $200 of value added

Question

Quizplus · Accepted Answer

The resulting output (meal) has a total value of $150, but $50 worth of raw foodstuff was transformed into it. Therefore, the value added by the chef and her equipment would be $100. This value added would be the output that the chef can take credit for transforming the input materials into. It is not an intermediate product (a partially completed product that will undergo further processing).

If a Chef and Her Equipment Transform $50 Worth of Raw