Find net value added at factor cost : (₹ Lakh) (i) Durable use producer goods with a life span of 10 years 10 (ii) Single use producer goods 5 (iii) Sales 20 (iv) Unsold output produced during the year 2 (v) Taxes on production 1

CBSE 2016 Class 12 Economics Delhi Set-1 - Question 6

Question : 6 of 18

Marks: +1, -0

Find net value added at factor cost :
(₹ Lakh)

(i)	Durable use producer goods with a life span of 10 years	10
(ii)	Single use producer goods	5
(iii)	Sales	20
(iv)	Unsold output produced during the year	2
(v)	Taxes on production	1

Solution:

Value of output = sales + change in stock

=20+2=22 \;\text " lakh. "\;

Gross value added at market price

=

value of output-intermediate consumption (single use producer goods)

=22-5=17 \;\text " lakh. "\;

Depreciation

=(

Cost of producers good

\div

no. of life in years)

=(10 ÷ 10)=1

Net Indirect taxes

=

Taxes on production - subsidy

=1-0=1

Net value added at

{\FC}= {\GVA} {\mp}-

Depreciation - Net indirect taxes

\;=17-1-1

\;=₹ 15 \;\text " lakhs. "\;

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