Net output: Difference between revisions

Revision as of 19:17, 7 June 2006

Revision as of 20:30, 2 August 2006

Line 9:

This involves an accounting procedure of "grossing and netting" the revenues which enterprises obtain from their outputs of goods and services, in order to establish what the real value of those outputs is.

This procedure must consistently identify and distinguish between costs and revenues, and between materials or services used up, fixed assets and new outputs. In national accounts, this is especially important because the inputs of one enterprise are the outputs of another, and vice versa; lacking a consistent procedure, [[double- counting (accounting)|double counting]] would result. In turn, the "grossing and netting" procedure assumes a [[value theory]] and a definition of the coverage of [[production]]. Once we have that, we can aggregate a multitude of prices to obtain a price for the total value of net output.

==Components of net output==