How to Calculate Value Added of different Sectors/Companies

Last updated at Dec. 14, 2024 by

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Example 16

Calculate Value Added of firm A,B ,C and D

  A B C D Total
VALUE OF OUTPUT          
Sale to B 20 0 0 0  
Sale to C 30 40 0 0  
Sale to D 0 60 100 0  
Household Consumption 40 50 100 300  
Change in Stock 10 0 0 0  
Sale to Government 0 0 0 100  
Exports 0 0 100 0  
Total 100 150 300 400  

Less

VALUE OF INTERMEDIATE CONSUMPTION

         
Purchase from A 0 20 30 0  
Purchase from B 0 0 40 60  
Purchase from C 0 0 0 100  
Total 0 20 70 160  
VALUE ADDED 100 130 230 240  
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CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo