What do you mean by Gross Domestic Product at Factor Cost ?
Gross Domestic Product at Factor Cost is an important measure of the income generated within an economy and is used in national accounting to assess economic performance and make comparisons across different sectors and countries. Factor cost refers to the total income earned by the factors of production (i.e., labour, capital, and entrepreneurship) involved in the production process. GDP at factor cost measures the value of output produced by these factors before any adjustments for taxes on production and subsidies provided to producers. To calculate GDP at factor cost, one typically starts with gross value added at factor cost, which is the total value added by all sectors of the economy before accounting for taxes and subsidies. Then, intermediate consumption (the value of goods and services used up in the production process) is subtracted from GVA to obtain GDP at factor cost.
How to Calculate Gross Domestic Product at Factor Cost?
Gross Domestic Product at Factor Cost calculator uses Gross Domestic Product at Factor Cost = Gross Domestic Product at Market Price+Subsidies-Indirect Taxes to calculate the Gross Domestic Product at Factor Cost, Gross Domestic Product at Factor Cost is a measure of the total value of all goods and services produced in a country during a specific time duration, typically a year, after accounting for the cost of intermediate consumption and before accounting for indirect taxes and subsidies. Gross Domestic Product at Factor Cost is denoted by GDPfc symbol.
How to calculate Gross Domestic Product at Factor Cost using this online calculator? To use this online calculator for Gross Domestic Product at Factor Cost, enter Gross Domestic Product at Market Price (GDPmp), Subsidies (Ss) & Indirect Taxes (IT) and hit the calculate button. Here is how the Gross Domestic Product at Factor Cost calculation can be explained with given input values -> 34750 = 25050+12000-2300.