Question

Calculate intermediate consumption of the following data; value of output= 200 ,net value addaed at fc=80 ,sales tax =15 ,subsidy = 5, depriciation=20

Answer 1

Calculate intermediate consumption of the following data

Explanation:

Gross value added = Value of output - Intermediate consumption

Intermediate consumption  =  Value of output (at MP)  -  Gross value added

                                                       at MP

                                                = Value of output (at MP) -( Net value added                                

                                                at   Fc + Depreciation +Sales tax - Subsidy )

                                                =   200 -(80 + 20 +15 -5)

                                                = 200- 110

                                                =90 lacs