calculate Net Value Added at factor cost from the following data: 1.Depreciation-20 2.Intermediate Cost-90 3.Subsidy-5 4.Sales-140 5.Exports-7 6.Change in Stock-(-10) 7.Importsnof raw materials-3
Dear student,
NVAFC = Value of output - Intermediate consumption - Depreciation - Net Indirect Taxes
NVAFC = (Sales + Change in stock ) - Intermediate consumption - Depreciation - (Indirect Taxes - Subsidies)
NVAFC = (140 + (-10)) - 90 - 20 - (0 - 5)
NVAFC = 130 - 110 + 5
NVAFC = Rs. 25
Note: Exports are not included as sales are given and sales includes both domestic sales as well as exports.
Import of raw material are not included seperately as intermediate cost includes domestic intermediate purchases as well as import of raw materials.
Regards
NVAFC = Value of output - Intermediate consumption - Depreciation - Net Indirect Taxes
NVAFC = (Sales + Change in stock ) - Intermediate consumption - Depreciation - (Indirect Taxes - Subsidies)
NVAFC = (140 + (-10)) - 90 - 20 - (0 - 5)
NVAFC = 130 - 110 + 5
NVAFC = Rs. 25
Note: Exports are not included as sales are given and sales includes both domestic sales as well as exports.
Import of raw material are not included seperately as intermediate cost includes domestic intermediate purchases as well as import of raw materials.
Regards