Sales for a firm is calculated as:

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Sales for a firm is calculated as:

Options:

Value of output + Intermediate consumption

Value of output - Intermediate consumption

Value of output - Change in stock

Closing stock + Value of output

Correct Answer:

Value of output - Change in stock

Explanation:

The value of output is calculated by adding sales and change in stock i.e.

Value of output = Sales + Change in stock

Sales = Value of output - Change in stock