Statistics Explained

Glossary:Value added at factor cost

Value added at factor cost is the gross income from operating activities after adjusting for operating subsidies and indirect taxes. It is an indicator in the domain of structural business statistics.

It can be calculated as the total sum of items to be added (+) or subtracted (-):

  • turnover (+);
  • capitalized production (+);
  • other operating income (+);
  • increases (+) or decreases (-) of stocks;
  • purchases of goods and services (-);
  • other taxes on products which are linked to turnover but not deductible (-);
  • duties and taxes linked to production (-).

Alternatively, it can be calculated from the gross operating surplus by adding personnel costs.

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