Arrange the following steps of calculation of National income in sequence.

(A) Deduction of intermediate cost

(B) Estimation of value of output

(C) Add net factor income from abroad

(D) Deduction of depreciation and NIT

Choose the correct answer from the options given below:

Option 1 -> Incorrect sequence - Cannot deduct intermediate cost before estimating output.

Option 2 -> Incorrect sequence - Intermediate cost deduction cannot precede output estimation.

Option 3 -> Correct sequence follows logical flow: First estimate total output, then remove intermediate costs to get value added, then adjust for depreciation and indirect taxes, finally add net foreign income.

Option 4 -> Incorrect sequence - Cannot add foreign income or deduct depreciation before estimating output.

Hence, Option 3: (B), (A), (D), (C) -> The correct sequence for calculating National Income is: (B) First, estimate the value of output (Gross Output) → (A) Then deduct intermediate costs to arrive at Gross Value Added → (D) Deduct depreciation (to get Net Value Added) and NIT/Net Indirect Taxes (to get income at factor cost) → (C) Finally, add net factor income from abroad to convert Domestic Income into National Income. This follows the standard production method of national income calculation. -> correct