Calculation Method Of Industrial Added Value
Industrial added value refers to the final achievement of industrial production activities in the form of currency in the reporting period of industrial enterprises.
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The total results of all production activities deduct the balance after the value of material products and labor services consumed or pferred in the production process, which is a new value added in the production process of enterprises.
There are two ways of calculating industrial added value:
The first is the production law, that is, the value of products and services in the process of industrial production.
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In order to get the added value, we should eliminate the value of the intermediate input in the production process.
Formula: industrial added value = gross industrial output value - intermediate investment in industry + VAT payable at this stage.
The two is the income law, that is, the initial distribution of the original income from the industrial production process.
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A method of accounting for the final results of industrial production activities.
Formula: industrial added value = depreciation of fixed assets + workers' remuneration + net production tax + operating surplus
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