in what way do industries enable value addition?
Answers
Answer:
The value added of an industry, also referred to as gross domestic product (GDP)-by-industry, is the contribution of a private industry or government sector to overall GDP. The components of value added consist of compensation of employees, taxes on production and imports less subsidies, and gross operating surplus. Value added equals the difference between an industry’s gross output (consisting of sales or receipts and other operating income, commodity taxes, and inventory change) and the cost of its intermediate inputs (including energy, raw materials, semi-finished goods, and services that are purchased from all sources).
Industries enable the value addition by reducing a tax rate and improving capacity utilization.
Explanation:
- GDP is the main factor to improve the addition of industry Gross Domestic Product and offering the private sector or government sector.
- It enables value addition, is mainly to satisfy the employee and to encourage the new technology and to reduce the taxes in import and export that leads to high revenue for the government.
Learn more about value addition
Mention various stages of value addition in the textile industry
https://brainly.in/question/7299158
Why industries provide value addition
https://brainly.in/question/13126274