RD Sharma Class 8 Solutions Chapter 13 - Profit Loss Discount and Value Added Tax (Ex 13.3) Exercise 13.3 - Free PDF
FAQs on RD Sharma Class 8 Solutions Chapter 13 - Profit Loss Discount and Value Added Tax (Ex 13.3) Exercise 13.3
1. How to approach RD Sharma Chapter 13 - Profit Loss Discount and Value Added Tax Exercise 13.3?
Read the entire exercise carefully. Underline chapter 13, profit loss discount, and value-added tax in the syllabus as a reference for yourself. Make sure you know all the concepts discussed in this chapter very well before attempting any question from this exercise. Understand the concepts discussed in the textbook before attempting any problems from this chapter, as it will help you score more marks. The solutions to the problems given in this exercise have been worked out step-by-step to make them easy for you to understand. After you have solved a problem, check your answer against the one provided in the solution. If you are still not sure about a concept, you can refer to the relevant chapter in the textbook for more clarity.
2. What is the difference between Loss and Discount?
Loss is the opposite of profit. It is what a business spends to produce its goods and services. The cost includes the expenses incurred to purchase raw materials, wages paid to employees, rent, and other operating costs. However, it can also include things like opportunity cost (the amount you could have earned if you invested your money elsewhere) or overhead costs (costs of doing business that isn't directly related to anyone's job, like rent or insurance). Discount refers to the price reduction given by the seller for early payment. It can also mean a reduction made on anything else, e.g., quantity discounts are reductions made on bulk purchases of goods. It is important to note that a discount is always expressed as a percentage.
3.What are the factors that promote value addition?
There are three main factors that promote value addition:
Different levels of processing using raw materials and other intermediary goods.
Locational differences result from transportation costs or other reasons, where a business may add value to a product in one location and then sell it at a higher price.
Businesses that add significant intangible values through design or other means can be difficult to measure but contribute a lot towards the final sale price.
These are the main factors that contribute to value addition. However, there are many other factors that can also play a role, like economies of scale, branding, etc.
4. How does VAT work?
Value Added Tax (VAT) is a tax that is paid by the person who buys the good or service. It is a consumption tax because it is paid when you purchase something, not when you earn income. VAT is charged at each stage of production and distribution. This means that the seller pays VAT on the goods they sell, and the buyer pays VAT on the goods they buy. The amount of VAT charged depends on the price of the goods and services. Vedantu offers NCERT Solutions for Class 8th Maths and Science for CBSE (NCERT/CBSE) Students.
5. What is a loan discount?
A loan discount refers to the total amount a lender receives after deducting all charges related to a specific advance or sum of money. Loan discounts may include administrative fees, arrangement fees, legal fees, etc. The borrower pays these charges as an integral part of their loan. The lender receives the remaining amount as the loan discount. This term is also used to describe the rate of interest at which a lender discounts a note or bill they have discounted. It is usually expressed as an annual percentage rate (APR).