Value Added Is

question 185

Multiple Choice

Value added is

• A) the price of an intermediate product.
• B) the amount of dollar value contributed to a product at each stage of its production.
• C) the sum of the prices of intermediate products.
• D) the dollar value contributed to a product at the last stage of its production.

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Definitions:

Return On Investment

A metric for assessing how well an investment is doing by comparing the net profit to the investment's initial cost.

Direct Expenses

Expenses directly linked to the manufacturing of particular products or services.

Sales

Sales involve the exchange of a product or service for money or its equivalent, constituting a fundamental activity of commercial enterprises to generate revenue.

Operating Departments

These are divisions within a business that are directly involved in carrying out the operations central to the business's purpose.