From the production side, GDP at market prices is calculated as a sum of the gross value added at basic prices for the economy as a whole and the adjustments. The latter includes net taxes on products, non-deductible VAT and import duties. Gross output (at basic prices) is the value of goods and services produced as a result of the production activity of resident units in three months. It can be a market and non-market. Market is the output that is sold or realized otherwise market or is intended for sale or exchange in future periods at prices significantly affect the market demand and supply and cover the costs of producing goods and services. This output is calculated as the sum of: - Net proceeds from sales (less the book value of goods sold );
- Cost of acquisition of fixed assets by economic means;
- Change in inventories of finished goods and work in progress.
As a result of the price changes the value of inventories of finished goods and work in progress accumulate so-called holding gains / losses. To eliminate its influence, the value of gross output is adjusted for holding gains / losses. Is a non-market production, which is not intended for sale or other market conditions. It includes goods and services produced and used for their own final consumption or capital or provided for individual or collective consumption free of charge or at not economically significant prices. This production is estimated as the sum of all current expenses ( materials for outside services, labor, social security , etc. ) used to produce it Intermediate consumption includes the value of all goods and services, transformed or entirely consumed in the production process during the period, excluding consumption of fixed assets recorded as consumption of fixed capital (depreciation). Intermediate consumption is valued at purchasers' prices ( buyer) and consists of: · goods and services , transformed or entirely consumed in the production process; · goods and services used by employees to mandatory or carrying out their work; · tools and small equipment; · Cost of repair and maintenance; · payments for outsourced research services, staff training, market research, advertising, postal, telegraph and telephone services, rents, subscriptions and more. |