Question 5
MediumOriginal questionA firm's accounts for a year:
| Item | ₹ lakh |
|---|---|
| Sales | 500 |
| Opening stock | 40 |
| Closing stock | 60 |
| Intermediate consumption | 200 |
| Depreciation | 30 |
| Indirect taxes | 25 |
| Subsidies | 5 |
What is the firm's value of output?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Value of output = sales + change in stock.
Change in stock = 60 − 40 = 20, so value of output = 500 + 20 = ₹520 lakh.
Worth noting
₹600 lakh adds the closing stock itself instead of the change in stock.
- Concept
- Value of output
- Typical timeTypical
- 70 s
- Your timeYours
- —
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