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Line 3: ==Definition== In national accounts, net output is equivalent to the gross [[value added]] during an accounting period when producing enterprises use inputs (labor and capital assets) to produce outputs. [[Gross value added]] is called "gross" because it includes depreciation charges or [[~~Consumption~~consumption of fixed capital]]. The calculation is importantly influenced by the definition of expenditures and incomes included within the scope of "production" - some incomes and expenditures are included as "factor income" or "factor expenditure" directly related to production, other are not. The calculation 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.

Net output: Difference between revisions