Calculate Net Value Added at a factor cost from the following data: 1.Sales-800 2.Purchase of machine for installation in the factory-500 3.Purchase of raw material-450 4.Subsidies-50 5.Consumption of Fixed Capital-60 6.Wages and salaries-200 7.Change in stock-40

Dear student,

NVAFC = Value of output - Intermediate consumption - Depreciation - Net Indirect Taxes
NVAFC 
=  (Sales + Change in stock ) ‚Äč- Intermediate consumption - Depreciation - (Indirect Taxes - Subsidies)
NVAFC =  (800 + 40)  - 450 - 60 - (0 - 50)
NVAFC =  840 - 510 + 50
NVAFC = Rs. 380

Regards

 

  • 1
?? wgaes
  • 1
What are you looking for?