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==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
The calculation of net output 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.
This procedure must consistently identify and distinguish between costs and revenues, and between materials or services used up, fixed assets and new outputs, according to a standard valuation method. 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 (economics)|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==
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