Question 14
HardOriginal 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 net value added at factor cost?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
GVA at MP = 520 − 200 = 320; NVA at MP = 320 − 30 = 290.
Net indirect taxes = 25 − 5 = 20, so NVA at FC = 290 − 20 = ₹270 lakh.
Worth noting
₹250 lakh subtracts the subsidy instead of adding it back: net indirect tax is taxes minus subsidies.
- Concept
- Net value added at factor cost
- Typical timeTypical
- 100 s
- Your timeYours
- —
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