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Product Method
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This is part one of the Product or Value added method.

Arpita Prakash
NCERTs series initiator at Unacademy 'Educator of the Month' for Feb'19 CBSE 0.1% Merit Certificate holder in Mathematics

U
Unacademy user
sir plz try to continue the courses till u get selected and even after that as. these are a blessing for us... u r really a true educator.. blessing in disguise for students like us! :)
Jatin Verma
2 years ago
Thanks Monica:)
I agree
Astha Singh
2 years ago
Sir ,hav u stopped the DNA ??? I was more comfortable with ur analysis.. I am unable to search the DNA for august Can u pls help
MB
Max B
2 years ago
Sir, please countinue this course. I am adicted to this course now :-)..
Rahul Barnwal
2 years ago
jatin sir please make courses of pib for august
Sri Abi
2 years ago
Sir thank u for making these courses i started with news paper only one month ago with ur detailed analysis of dna i have a good knowledge with ca now. I pray that u shd get selected with flying colours.
Surya Pratap
2 years ago
Sir aap apni videos mein mcq ke ek do example bhi de diya kariye, humlogon ko pata lag jayega ki current affairs se kaise parhna hai
Shruti Joshi
2 years ago
sir dna
Merselina Dutta
2 years ago
Sir, yours daily current affairs MCQs are very much helpful. It covers static portion and gives the idea of type of question asked in prelims. It will be helpful if u start the sessions of mcqs again..
Mohammad usman
2 years ago
are not u making mcq course of august? sir
maam! in the last example of this video,the value added should be Rs 80 right(total production-value of intermediate goods)
why do we do not calculate the value of intermediate goods to the value added of a firm ( despite the firm incurring costs in buying intermediate goods) ???? please please clear my doubt
thank you so much ...
  1. PRODUCT OR VALUE ADDED METHOD oCalculation of aggregate annual value of goods and service produced o Considering an year as time unit o Value added->term to denote net contribution made by a firm o Value added of a firm value of production of firm- value of intermediate goods used by firm . Distributed among four factors of production - labour, capital, land, entrepreneurship - Flow variable (wages, interests, profits, rents) oExample: Table 2.1: Production, Intermediate Goods and Value Added Farmer Baker 100 Total production Intermediate goods used0 Value added 200 50 200 50 150 100


  2. Value added of a firm = Value of production of firm-value of intermediate goods used by the firm Gross Value Added Value addedDepreciation (consumption of fixed capital /replacement investment) . Net Value Added Gross Value Added-Depreciation doesn't include wear and tear of capital ) Example: o Value of production of a good by firm Rs 100 (per year) o Value of Intermediate goods used during that year Rs 20 o Value of Capital Consumption Rs 10 o Gross Value Added Rs 100- Rs 20- Rs 80 per year o Net Value added Rs 100- Rs 20- Rs 10 Rs 70 per year