I am trying to understand the advection equation with variable velocity coefficient a bit better. In particular I don't understand how the equation can be conservative.
The advection equation,
$$ \frac{\partial u}{\partial t} + \frac{\partial}{\partial x}(\boldsymbol{v}u) = 0 $$
Let's interpret $u(x,t)$ as being the concentration of some physical species ($cm^{-3}$) or some other physical quantity which cannot be created or destroyed. If we integrate $u(x,t)$ over our domain then we should get constant,
$$ \int_{x_{\text{min}}}^{x_{\text{max}}} u(x,t) dx = \text{constant} $$
(This is what I mean by being conservative.)
If we now let the velocity be a function of space (and time), $\boldsymbol{v}(x,t)$, then the chain rule must be applied to give,
$$ \frac{\partial u}{\partial t} + \boldsymbol{v}\frac{\partial u}{\partial x} + \underbrace{u\frac{\partial \boldsymbol{v}}{\partial x}}_{\text{?}} = 0 $$
The final term "looks" like a source term and this is what I find confusing. It will increase or decrease the quantity $u$ depending on the divergence of the velocity field.
Following this question, I understand how to impose conservation boundary conditions. However, for the variable velocity advection equation I don't understand how conservation boundary conditions can be derived because of the additional "source term" that is introduced by applying the chain rule. Can this equation be conservative? If so, how can correct boundary conditions be applied?