From the following, find the right sequence for measuring National Income by Value Added Method:

(A) Subtract the value of depreciation and net indirect taxes and add net factor income from abroad to arrive at national income.

(B) Estimate the sum total value of output in the primary, secondary and tertiary sectors in the economy.

(C) Estimate the value added of each sector by subtracting intermediate consumption from the value of output for every sector.

(D) Calculate gross value added as the sum of value added of the three sectors.

Option 1 -> Incorrect sequence - Cannot calculate gross value added (D) before estimating output (B) and value added (C).

Option 2 -> Correct sequence - First estimate total output (B), then calculate value added by subtracting intermediate consumption (C), then sum up all sectors' value added (D), and finally adjust for depreciation, indirect taxes and NFIA to get national income (A).

Option 3 -> Incorrect sequence - Cannot make final adjustments (A) before calculating gross value added (D) and individual sector value added (C).

Option 4 -> Incorrect sequence - Cannot estimate value added (C) before estimating total output (B).

Hence, Option 2: (B), (C), (D), (A) -> The Value Added Method follows a logical progression: (B) Start by estimating the gross value of output across all three sectors of the economy, (C) Calculate value added for each sector by removing intermediate consumption to avoid double counting, (D) Sum all sectoral value additions to get Gross Value Added at Market Prices (GVAMP), (A) Finally, adjust by subtracting depreciation (to get Net Value Added) and net indirect taxes (to get at Factor Cost), then add Net Factor Income from Abroad to arrive at National Income. -> correct