question_answer

                                From the following data, calculate net value added at factor cost. 

S. No	Contents	Rs.(in lakhs)
(i)	Sales	500
(ii)	Subsidies	30
(iii)	Purchase of Machine Intalled in the Factory	400
(iv)	Purchase of Raw Materials	250
(v)	Change in Stock	(-) 20
(vi)	Consumption of Fixed Capital	40

Answer:

Net Value Added at Factor Cost\[(NV{{A}_{FC}})\]=Sales+Change in Stock ? Purchase of Raw Materials ? Consumption of Fixed Capital+Subsidies              \[=500+(-20)-250-40+30\] \[=530-310=Rs.\,\,220\,\,lakhs\]