#### What is Gross Value Added at Factor Cost?

**
We know that
**

GDP at Market Price is equal to Total Value Added by All Sectors/Companies

From this Net Indirect Taxes is Reduced

So we get Gross Value Added at Factor Cost

GDP Mp (Gross Value Added at Market Price) | xx |

Less Net Indirect Taxes (Tax-Subsidy) |
xx |

Gross Value Added At Factor Cost | xx |

**
Example 4
**

#### Calculate Gross Value added at Factor Cost

Particulars | Amt in thousands |

Sales | 500 |

Opening Stock | 30 |

Closing Stock | 20 |

Purchase of Intermediate Products | 300 |

Purchase of Machinery | 150 |

Subsidy | 40 |

## Note

Net Indirect Taxes

= Taxes - Subsidy

= 0 - 40

= - 40

Sometimes Value of Output is not given in question

It is calculated by multiplying Quantity and Price per unit

OUTPUT=Price per Unit* No of Units Sold

**
Example 10
**

#### Calculate Gross Value added at Factor Cost

Particulars | Amt |

Units of Output Sold | 1000 |

Price per unit of output | 30 |

Depreciation | 1000 |

Intermediate Cost | 12000 |

Closing Stock | 3000 |

Opening Stock | 2000 |

GST | 6000 |

Sometimes Sales, Opening and Closing Stock is given in Question

We have to calculate value of Output

= Sales + Change in Stock

= Sales + Closing Stock-Opening Stock

**
Example 5
**

#### Calculate Gross Value Added at Market Price

Particulars | Amt in lakhs |

Depreciation | 20 |

Domestic Sales | 200 |

change in stock | -10 |

Exports | 10 |

Single use Producer goods | 120 |

Net Indirect Taxes | 20 |

## NCERT Questions

**
No questions in this part
**

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