Question

Calculate the value of 'Change in Stock' from the following data :
S. No. Items
Amount
(in Crores)
Sales
400
Net Value Added at Factor Cost (NVAFC)
200
Subsidies
10
Depreciation
40
Intermediate Consumption
100​

Answer 1

The value of the change in stock is -110

Explanation:

The value of the change in the stock is computed as:

GDP at Market Price = Net Value Added at Factor Cost (NVAFC) - Subsidies + Consumption of fixed capital

where

NVAFC is 200

Subsidies is 10

Consumption of fixed capital is o

Putting the values above:

GDP at Market Price = 200 - 10 + 0

GDP at Market Price = 190

Now, Computing the change in stock is computed as:

GDP at MP = Sales + Change in Stock - Intermediate Consumption

So,

Change in Stock = GDP at MP - Sales + Intermediate Consumption

Change in Stock = 190 - 400 + 100

Change in stock = - 110