[Solved] Value of out put and value added can be distinguished if we know:

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Q.	Value of out put and value added can be distinguished if we know:
A.	the value of intermediate consumption
B.	the value of net indirect taxes
C.	the value of the sales
D.	the value of consumption of fixed capital
Answer» A. the value of intermediate consumption
Explanation: Intermediate consumption is an accounting flow which consists of the total monetary value of goods and services consumed or used up as inputs in production by enterprises. including raw materials, services and various other operating expenses. Inter-mediate consumption (unlike fixed assets) is not normally classified in national accounts by type of good or service, because the accounts will show net out-put by sector of activity. Because this value must be subtracted from Gross Output to arrive at GDP, how it is exactly defined and estimated will importantly affect the size of the GDP estimate.

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