Subtracting the purchase of intermediate products and supplies from the value of the sales of final products determines the amount of:

Question

Quizplus · Accepted Answer

The difference between the value of sales of final products and the value of intermediate products and supplies is known as value added. It represents the contribution of a particular firm or industry to the economy by creating value through the production process. Therefore, option C is the correct answer as it accurately reflects the concept of value added. Net investment (option A) refers to the increase in productive assets, profit and cost (option B) are financial measures of business performance, and surplus or deficit (option D) refers to the difference between total revenue and total expenses of a business.

Subtracting the Purchase of Intermediate Products and Supplies from the Value