question_answer

Find net value added at factor cost:
		(Rs. Lakh)
(i)	Durable use producer goods with a life span of 10 years	10
(ii)	Single use producer goods	5
(iii)	Sales	20
(iv)	Unsold output produced during the year	2
(v)	Taxes on production	1

Answer:

Value of output = sales + change in stock

\[=20+2=22\]\[lakh\].

Gross value added at market price = value of output - intermediate consumption (single use producer goods)

\[=225=17\text{ }lakh\].

Depreciation = (Cost of producers good - no. of life in years)

\[=(10\div 10)=1\]

Net Indirect taxes = Taxes on production - subsidy

\[=10=1\]

Net value added at FC = GVA mp - Depreciation - Net indirect taxes

\[=1711\]

= 15 lakhs.