question_answer

Find out the Net Value Added at Factor Cost of a producing unit from following data.

S. No.	items	(Rs.) in lakhs
(i)	Total Sales	8,000
(ii)	Closing Stock	1,400
(iii)	Opening Stock	1,000
(iv)	Indirect Taxes	400
(v)	Subsidies	300
(vi)	Depreciation	600
(vii)	Purchase of Raw Material from Other Firms	2,000

           

Answer:

Gross Value Added at Market Price\[(GV{{A}_{MP}})\]                                             =Value of Output [Sales + Change in Stock (Closing Stock- Opening Stock)] ? lntermediate Consumption                                                                  \[=8,000+(1,400\text{ }-1,000)-2,000\] \[=8,400-2,000=Rs.\,\,6,400\,\,lakh\] Net Value Added at Factor Cost\[(NV{{A}_{FC}})\]                                                  =\[GV{{A}_{MP}}-\]Depreciation - Net Indirect Tax (Indirect Tax - Subsidies)                       \[=\text{ }6,400-600-(400-300)\] \[=6,400-700=Rs.\,\,5,700\,\,lakh\]