What is Net 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
From this, Depreciation is Reduced to arrive at Net 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 |
Less Depreciation | xx |
Net Value Added at Factor Cost | xx |
Example 6
Calculate Net Value Added at Factor Cost
Particulars | Amt in lakhs |
Subsidy | 40 |
Sales | 800 |
Depreciation | 30 |
Exports | 100 |
Closing Stock | 20 |
Opening Stock | 50 |
Intermediate Purchase | 500 |
Purchase of machinery for own use | 200 |
Import of raw material | 60 |
Question 3
Calculate Net Value Added at Factor Cost
Particulars | Amt in crores |
Purchase of machinery for production use | 100 |
Sales | 200 |
Intermediate Cost | 90 |
Indirect Taxes | 12 |
Change in Stock | 10 |
GST | 6 |
Stock of Raw material | 5 |
Question 8
Calculate Net Value Added at Factor Cost
Particulars | Amt |
Consumption of Fixed Capital | 600 |
GST | 400 |
Output Sold | 2000 |
Price per unit of output | 10 |
Net change in stock | -50 |
Intermediate cost | 10000 |
Subsidy | 500 |
NCERT Questions
No questions in this part
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