The sum of all value added equals the value of all intermediate products and services.

Question

Quizplus · Accepted Answer

The sum of all value added equals the value of all final products and services, not intermediate products and services, because value added measures the increase in value that an entity gives to goods and services. Intermediate products are used in the production of final goods or services and their value is included in the final product's value, avoiding double counting.

The Sum of All Value Added Equals the Value of All