Value added means value of:

Output at market prices

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Output less depreciation

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Output less Intermediate Cost

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Output plus Intermediate Cost

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Solution

The correct option is C Output less Intermediate Cost
Value addition or value added is the difference between the value of output and intermediate cost. Value of output refers to the market value of goods and services produced by a firm in a given accounting period. Intermediate cost occurs because of intermediate consumption.

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Similar questions

Calculate intermediate consumption from the following data:

$\begin{matrix} Value of output & 400 Net value added at factor cost & 160 Depreciation & 40 Subsidy & 10 Sales tax & 30 \end{matrix}$

Calculate:

(a) GVA at MP

(b) Intermediate consumption from the following data:

$\begin{matrix} Value of output & 400 Net value added at factor cost & 160 Depreciation & 40 Subsidy & 10 Sales tax & 30 \end{matrix}$

In the value added method, we subtract the intermediate consumption from total value to avoid the problem of:

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