Question

Calculate Net Value Added at Factor Cost
Particuars
Consumption of Fixed capital 600
Goods and Services Tax or GST 400
Output sold (units)
2.000
(iv) Price per unit of output
10
(M) Net change in stocks
(-) 50
(vi) Intermediate cost
10.000
(vii) Subsidy
500
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Answer 1

Answer:

Sales = Output Sold x Price Per Unit =2000 x 10 = Rs 20000. Now, Value of Output = Sales + Change in Stocks = 20000 + (-50) = Rs 19950. $GV{{A}{MJ}}$ = Value of Output - Intermediate Cost = Rs (19950 - 10000) = Rs 9950. Hence, NVAFC = $GV{{A}{MP}}$ - Consumption of Fixed Capital - Net Indirect Tax (Import duty - Subsidy) = 9950 -600 - (400 - 500) (Where Net Indirect Tax = Import duty - Subsidies) $NV{{A}{FC}}$= Rs 19450.Read more on Sarthaks.com - https://www.sarthaks.com/404324/calculate-net-value-added-at-factor-cost-from-the-following-data