Final answer:
The statement in question is false. Value-added is the difference between the sales price of goods or services and the cost of inputs used to produce them. It highlights the additional value a company creates through the production process.
Step-by-step explanation:
The statement 'Value-added refers to the cost of the inputs required to produce goods and services' is false. Value-added refers to the increase in value a business creates by undergoing the production process. It is the difference between the price at which goods or services are sold and the cost of the inputs used in their production, capturing the additional value created. The cost of a product does indeed depend on the number of inputs required and their respective costs, but this is related to the production costs, not to the concept of value-added.
Inputs are the resources used in the production process, such as labor, materials, and machinery, also known as the factors of production. A company's production function can help determine how many inputs are required for producing that output and, subsequently, how these inputs contribute to the total production cost. However, value-added specifically describes the final value output that exceeds the inputs' cost.