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

question 279

Multiple Choice

The term "value added" refers to the dollar value of

• A) an industry's sales plus profits.
• B) the intermediate goods and services 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.

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Definitions:

Sales Increase

A rise in the volume or value of goods and services sold by a business over a given period.

Total Fixed Assets

The combined value of all long-term physical assets owned by a company, which are used in the production or supply of goods and services.

Operating Capacity

The maximum output that a company can produce and sell with the current resources and technology.

Net Working Capital

A measure of a company's liquidity, calculated as current assets minus current liabilities, indicating the short-term financial health and operational efficiency of a business.