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Question
Define the following: Value Addition
Solution
Value Addition: Value addition on a good refers to the increase in the value of good at each successive stage of production. Algebraically, Value Addition is the difference between the total value of the output and the total value of the intermediate consumption.
Value Addition = Total Value of Output – Total Value of Intermediate Consumption.
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RELATED QUESTIONS
Find net value added at factor cost:
(Rs lakh)
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iii) Sale 20
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| Producer | Value of output | Intermediate Consumption |
Value Added |
| Farmer | 2,000 | - | 2,000 |
| Banker | __(i)__ | 2,000 | 2,000 |
| Retail Seller | 4,400 | (iii) | 400 |
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| PARTICULARS | (₹crores) | |
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| (vii) | Net exports | (-) 75 |
| (viii) | Interest | 200 |
| (ix) | Net indirect taxes | 265 |
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