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Generally, Value-added refers to the measure of value addition in the raw material (non-factor units) by a production unit, through its production activities. Alternative Name of value added method are:

Generally, the product method refers to the measure of value addition in the raw material (non-factor units) by a production unit, through its production activities. Alternative Name of Product Method are:  

Compensation of Employees Consists of Major two compnents Compensation of Employees = Wages & Salaries + Employers Contribution of Social Security Schemes Let’s understand all Components of compensation of Employees. Here are the different components of Compensation of Employees. Wages…

Sum total of GVA at MP of all producing enterprises within the domestic territory of a country during one year is equal to GDP at MP. Explanation:- GVA at MP (Gross Value Added at Market Price) is also called GDP…

Compensation of Employees refers to amount paid to Employee by Employer for rendering productive services. Explanation:- Compensation of Employees in general terms called wages and salaries paid to employees for providing their factor (productive) services. But compensation of Employees is…

Value Added Method is also known as Industrial Origin Method. Explanation:- If we add up net value added that has taken place in various productions and industries during a year. In order to arrive at the net value added of…

Royalty refers to income received for granting leasing rights of sub-soil assets. Explanation:- Royalty is just the rent earned by giving sub-soil assets on rent (leasing) for a few months and year. Subsoil assets are developed and undeveloped reserves of…

When the entire output is sold in an accounting year, then Value of Output is equal to Sale. Explanation:- When the entire output is sold, the change in inventories is zero Value of Output = Sales + Change in inventories…

Yes, Royalty is part of the operating surplus. Explanation:- Operating surplus refers to income from Property and entrepreneurship. It includes the following items Operating surplus = Income from Property + Income from entrepreneurship Income from Property consists of Income from…

Following are the components of Operating Surplus It refers to income from Property and entrepreneurship. It includes the following items. Profit further can be divided into three components. Dividends:- It is part of the profit distributed among shareholders. It is…