question_answer

Calculate Net Value Added at Factor Costs:
S. No.	Items	Amount (in Rs)
(i)	Consumption of fixed capital (Rs)	600
(ii)	Import duty (Rs)	400
(iii)	Output sold (units)	2,000
(iv)	Price per unit of output (Rs)	10
(v)	Net change in stock (Rs)	(-) 50
(vi)	Intermediate cost (Rs)	10,000
(vii)	Subsidy (Rs)	500

Answer:

\[NV{{A}_{FC}}\] = Sales + Change in Stock - Intermediate Cost - Consumption of Fixed Capital - Net Indirect Taxes Sales = Quantity \[\times \] Price

\[=2,000\times ~10=Rs.\text{ }20,000\]

Net Indirect taxes = Taxes - subsidy

= Import duty - subsidy

\[=Rs.\text{ }400-500=-100\]

\[\therefore \,\,\,\,\,NV{{A}_{FC}}=20,000+(-50)-10,000-600(-100)\]

= Rs. 9,450 crore