The production approach GDP at market prices is calculated as the sum of gross value added at basic prices in the economy and adjustments, which include net taxes on products, non- value-added tax 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 annual period. 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); · The 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). |