Question

Activity no.2 Company Revenues - Cost of Purchased Inputs = Value Added ABC Grain $0.50 $0.00...

Activity no.2
Company
Revenues - Cost of Purchased Inputs = Value Added
ABC Grain
$0.50
$0.00
.......
General Flour
$1.20
$0.50
.......
Hot'n'Fresh
$2.00
$1.20
.......
Total
........
Fulfill the value added in previous table?
Business   Economics   
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Homework Answers

Answer #1

Since for any firm, "Value Added" is the market value of its products or services minus the cost of purchased inputs (cost of inputs which are purchased from other firms).

Inference from the given table (Activity Number 2) :

Value Added for ABC Grain = Revenues - Cost of purchased inputs.

= $0.50 - $0.00

=$0.50

Now, Value Added for General Flour = Revenues - Cost of purchased inputs.

= $1.20 - $0.50

= $0.70

Proceeding in the same way,

Value Added for Hot' n' Fresh = Revenues - Cost of purchased inputs.

= $2.00 - $1.20

= $0.80

So, the Total = Value Added for ABC Grain + Value Added for General Flour + Value Added for Hot' n' Fresh

Total = $0.50 + $0.70 + $0.80

Total = $2.00

So, the required (complete) table is :

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