Purchase of machinery to be used in production unit = 100
Sale = 200
Intermediate cost=90
Direct taxes=12
Change in stock=10
GST=6
Stock of raw material=5
Calculate net value added at factor cost
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AnswerGross value added at factor cost
= Sales + (Closing stock – Opening stock) – Purchase of intermediate products + subsidy
= 500+ (20-30) – 300 +40
= ₹230 thousand
Explanation:
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