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Question
What is the formula of net value added at factor cost?
What is the formula of net value added at factor cost?
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Solution
The formula of Net Value Added (NVA) at factor cost = sales +change in stock – value of intermediate goods – net indirect tax – depreciation. Value added at factor cost is the gross income from operating activities after adjusting for operating subsidies and indirect taxes. It is an indicator in the domain of structural business statistics.
The formula of Net Value Added (NVA) at factor cost = sales +change in stock – value of intermediate goods – net indirect tax – depreciation. Value added at factor cost is the gross income from operating activities after adjusting for operating subsidies and indirect taxes. It is an indicator in the domain of structural business statistics.
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