Value added is
A)the sum of all income earned by resource suppliers
B)actual investment minus planned investment
C)any payment of income that adds to the domestic spending stream
D)the value of a product minus the cost of materials
E)the increase in the value of a financial asset such as a stock or bond

Question

Quizplus · Accepted Answer

Value added refers to the difference between the value of a product or service and the cost of materials used to produce it. It can be calculated by subtracting the cost of inputs from the value of outputs. Therefore, option D – the value of a product minus the cost of materials – is the best choice.

Value Added Is