Question

The value of output of a firm during a year is rupees 330 lakh. Intermediate consumption during the process of production is Rupees 160 lakh. If net value added by the firm rupees 145 lakh. Then what will be: .Gross value added

Answer 1

Answer:

Value of output = Sales +Δ in Stock

⟹ Value of Output =20+2

⟹ Value of Output =Rs.22 lakhs

Gross Value added at MP = Value of Output − Intermediate Consumption

Gross Value added at MP =22−5=Rs.17 lakhs

NVA

FC

=GVA

MP

− Depreciation − Net Indirect Tax

⟹NVA

FC

=17−(

No. of useful life in years

Cost of producer goods

)−(Indirect Tax - Subsidy)

⟹NVA

FC

=17−(

10

10lakh

)−(1−0)

∴NVA

FC

=Rs.17−1−1=15 lakhs

Note: Here, single use producer goods are considered as raw materials that were used in the production process.