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Gross and Net Value Added Quiz

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GVA = value added - depreciation

GVA = value added / depreciation

GVA = value added + depreciation (correct)

GVA = value added * depreciation

Net Value Added = Gross Value Added + depreciation

Net Value Added = Gross Value Added / depreciation

Net Value Added = Gross Value Added – depreciation (correct)

Net Value Added = Gross Value Added * depreciation

Rs 390

Rs 400 (correct)

Rs 405

Rs 420

The formula for Gross Value Added (GVA) is: GVA = Value of Output - Intermediate Consumption
Net Value Added (NVA) is calculated by subtracting Depreciation from Gross Value Added (GVA): NVA = GVA - Depreciation

In the milk-cheese example, if the Gross Value Added (GVA) is Rs 410 and Depreciation is Rs 10, the Net Value Added (NVA) would be: NVA = Rs 410 - Rs 10 = Rs 400