General Knowledge - Indian Economy - Discussion

Discussion :: Indian Economy - Indian Economy (Q.No.66)

66. 

In utensils worth Rs 1000 are produced with copper worth Rs 500, wages paid are Rs 100, other material purchased is worth Rs 100 and depreciation of machinery is zero, then what is the value added in process?

[A]. Rs 1000
[B]. Rs 500
[C]. Rs 400
[D]. Rs 300

Answer: Option D

Explanation:

No answer description available for this question.

Anu said: (Nov 13, 2010)  
can anyone plz tell how is value added calculated in this question....pls reply ASAP..

Ashini said: (Feb 3, 2011)  
1000-500-100-100 = 300

Snigdha Mukherjee said: (May 13, 2011)  
The amount of intermediate consumption is deducted from the total amount.

Here it is 1000 - 500 - 100 - 100 = 300

Ria said: (Jul 21, 2011)  
In calculation of value added should we subtract the wage payment? I guess we should minus the value of intermediate purchase only, here copper & other material.

Devi said: (Jul 6, 2012)  
Worth of utensils=1000.

Expenses include copper worth, wage& material purchased=500+100+100=700.

Value added=1000-700=300.

Kotrsha Kunchur said: (Mar 28, 2015)  
1000-500-100-100 = 300 this is the process of value added.

Mahaveer said: (Dec 24, 2015)  
It is the value added to all the input costs i.e., copper, wages, and other materials.

Value addition=Output value-Input value.

Momo said: (Apr 26, 2018)  
Wages are not subtracted.

Value added is thus defined as the gross receipts of a firm minus the cost of goods and services purchased from other firms. Value added includes wages, salaries, interest, depreciation, rent, taxes and profit.

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