Value added is the difference between the value of good as they leave a stage of production and cost of the goods as they entered that stage of production.

Question

Quizplus · Accepted Answer

This definition is correct. Value added is the increase in value created during the production process. It is calculated by subtracting the cost of materials and supplies used in production from the total value of the finished product at each stage of production.

Value Added Is the Difference Between the Value of Good