The term "value added" refers to the dollar value of
A)an industry's sales plus profits.
B)the intermediate goods purchased by an industry.
C)an industry's sales less the dollar value of the intermediate goods purchased by the industry.
D)the intermediate goods purchased by an industry plus the profits of the industry.

Question

Quizplus · Accepted Answer

Value added represents the increase in the value of a product or service as a result of a particular production process. It is calculated as an industry's sales less the dollar value of the intermediate goods purchased by the industry. Therefore, choice C is the correct answer.

The Term "Value Added" Refers to the Dollar Value of