Question

Which formula expresses Value Added?

Options

• \[\mathrm{Value\ Added}=\mathrm{Value\ of\ Output}-\mathrm{Value\ of\ Intermediate\ Inputs}\]

• \[\mathrm{Value\ Added}=\mathrm{Current\ Year's\ Stock}+\mathrm{Previous\ Year's\ Stock}\]

• \[\mathrm{Value\ Added}=\mathrm{Value\ of\ Output}+\mathrm{Value\ of\ Intermediate\ Inputs}\]

• \[\mathrm{Value\ Added}=\mathrm{Value\ of\ Final\ Goods\ Sold}-\mathrm{Depreciation}\]

Answer 1

Value Added is obtained by subtracting the value of intermediate inputs from the value of output. It represents the additional value created at a stage of production.