Question

From the following data, calculate Gross Value Added at Factor Cost:
Items
(i) Units of output sold
(ii) Change in stock
(iii) Subsidies
(iv) Consumption of fixed capital
(v) Intermediate consumption
(vi) Price per unit of output
(vii) Rent
(Rs)
1,000
100
300
500
7,000
10
700

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Answer 1

Answer:

"Gross Value Added at Factor Cost by Firm X

= Sales + Change in stock (Closing stock – Opening stock) + Subsidy – Purchase of intermediate products

= ` 500 thousand + (` 20 thousand – ` 30 thousand) + ` 40 thousand – ` 300 thousand

= ` 500 thousand – ` 10 thousand + ` 40 thousand – ` 300 thousand

= ` 230 thousand

Ans. Gross value added at factor cost by firm X = ` 230 thousand."

Explanation: