Question

precautions of value added method

Answer 1

Heya...

Precautions of value added methods are....

* Value on purchase and purchase of second hand good is not to be counted...

* Commission on sale and purchase of second hand goods is must be counted..

* Value of Intermediate goods is not to be included...

* Imputed value on self consumptions while self production is included...

* Services of self consumptions like drop children to school is not estimated...

Answer 2

Precautions of value added methods are as follows :

1. Cost of intermediates good can't be counted in final goods.

2. Second hand goods and services are not a subject to be marked with MSP.

3. Value added goods should include all the printed cost included in it.