Calculate Gross Value Added at Factor Cost - Economics

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Calculate Gross Value Added at Factor Cost:

i Units of output sold (units) 1,000
ii Price per unit of output (Rs) 30
iii. Depreciation (Rs) 1,000
iv. Intermediate cost (Rs) 12,000
v. Closing stock (Rs) 3,000
vi. Opening stock (Rs) 2,000
vii. Excise (Rs) 2,500
viii. Sales tax (Rs) 3,500

 

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Solution

Gross Value Added at Factor Cost (GVAFC) = Total Value of Sales + Change in Stock − Intermediate Consumption − Net Indirect Taxes

⇒ GVAFC (or GDPFC) = (1000 × 30) + (3000 − 2000) − 12000 − (3500 + 2500)
Or GVAFC = Rs13,000

Concept: Aggregates Related to National Income - Gross Value Added and Net Value Added
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2011-2012 (March) Delhi Set 1

RELATED QUESTIONS

Find net value added at market price:

    (Rs lakh)
(i) Fixed capital good with a life span of 5 years 15
(ii) Raw materials 6
(iii) Sales 25
(iv) Net change in stock (-)2
(v) Taxes on production 1

Find gross value added at market price

    (Rs lakh)
(i) Depreciation 20
(ii) Domestic sales 200
(iii) Net change in stocks (-) 10
(iv) Exports 10
(v) Single use producer goods 120

Calculate “sales” from the following data:

       

(Rs in lakhs)

 

(i)

 

Intermediate costs

 

700

 

(ii)

 

Consumption of fixed capital

 

80

 

(iii)

 

Change in stock

 

(−) 50

 

(iv)

 

Subsidy

 

60

 

(v)

 

Net value added at factor cost

 

1300

 

(vi)

 

Exports

 

50


Calculate ‘Sales’ from the following data:

   

(Rs  in lakhs)

(i)

Subsidies

200

 

(ii)

Opening stock

100

 

(iii)

Closing stock

600

 

(iv)

Intermediate consumption

3,000

 

(v)

Consumption of fixed capital

700

 

(vi)

Profit

750

 

(vii)

Net value added at factor cost

2,000


What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.


Given the following data, find Net Value Added at Factor Cost by Sambhav (a farmer) producing Wheat:

  Items (₹ in crore)
i) Sale of wheat by the farmer in the local market 6800
ii) Purchase of Tractor 5000
iii) Procurement of wheat by the Government from the farmer 200
iv) Consumption of wheat by the farming family during the Year 50
v) Expenditure on the maintenance of existing capital stock 100
vi) Subsidy 20

From the following data, calculate Net Value Added at Factor Cost (NVAFC):

S. No. Particulars Amount in
(₹ Crores)
(i) Price per unit of output 20
(ii) Output sold (units) 1250 units
(iii) Excise duty 5,000
(iv) Consumption of fixed capital 1,000
(v) Change in stock (-) 500
(vi) Single use producer goods 6,000

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