Question

A firm's value added is a. the revenue it receives for its output, minus the cost of all the intermediate goods it buys b. the revenue it receives for its output, minus the taxes that it pays c. the revenue it receives by selling its output d. usually not included in GDP e. the revenue it receives for its output, plus the cost of all the intermediate goods it buys g

Answer 1

a. the revenue it receives for its output, minus the cost of all the intermediate goods it buys.

Step-by-step explanation:

An asset can be defined as an resources owned and controlled by an individual or organization, which is capable of providing future economic benefits or has the potential to produce positive economic value. Assets can be used to generate revenue in the future or even in its present state depending on the choice of the owner.

On the other hand, an expense is a term used to describe money spent or cost incurred by an individual or organization.

Hence, a firm's value added is the revenue it receives for its output, minus the cost of all the intermediate goods it buys.

This ultimately implies that, a firm's value added is the sum of its revenue from the sales of its goods and services, minus the expenses on purchase or inventory.