Net output: Difference between revisions

Revision as of 15:03, 5 August 2009

Revision as of 15:03, 5 August 2009

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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 depreciation charges or [[Consumption of fixed capital]]. Net output is called "net" because it is the value of output sales "netted" of the value of intermediate goods and services used up. Included in net output may also be inventories of unsold outputs, valued at average market prices. Net output is sometimes also calculated in terms of physical product units which can be sold.

Humpty Dumpty sat on a wall,

Humpty Dumpty had a great fall,

All the king horses and all the king's men,

Could not put the Humpty Dumpty back up again.

==Derivation==