How you could calculate the total value of a good or services by using the method of value added at each stage.

Dear Student,

The total value added of a cost or service is calculated using the method of value added at each stage. 

1. At the first stage, the cost of the raw material is taken into account.
2. At the second stage, the raw material is converted into a manufactured product. The wholesale price of the product is subtracted from the cost of the raw material. This is the value added at the second stage. This value is added to the cost of the raw material.
3. At the third stage, the product is sold to consumers at a retail price. This retail price is subtracted from the wholesale price. This is the value added at the third stage. It is added to the value calculated at the second stage. The total then becomes the value at the third stage.
4. The final value of the product is the value added at the third stage.

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