Value Added Method
This method is also called Product Method or Inventory Method or Net Output Method
As per this method
We calculate National Income by calculating and adding Value added by different firms
Lets Learn about it step by step
What is Value Added?
It is the addition to economic value of product
at each stage of production Process
NCERT Questions
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Other Books
Question 1
Discuss briefly the Value Added Method.
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This method is also called Product Method or Inventory Method or Net Output Method
As per this method
We calculate National Income by calculating and adding Value added by different firms
From this, we reduce Depreciation, Indirect Taxes and Add Net Factor Income from Abroad to calculate National Income
Lets Learn about it step by step