Gross output is an economic concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the US National Income and Product Accounts (NIPA). It is equal to the value of net output or GDP (also known as gross value added) plus intermediate consumption.
Gross output represents, roughly speaking, the total value of sales by producing enterprises (their turnover) in an accounting period (e.g. a quarter or a year), before subtracting the value of intermediate goods used up in production. This description is not quite accurate though, among other things because flows and imputations relating to government services and households are also included.
To obtain a measure of gross value added or Net output, the value of intermediate goods and services must be subtracted from gross output. Net value added is obtained by additionally subtracting consumption of fixed capital (depreciation).
Read more about Gross Output: Definition of Production, Presentations in UNSNA Accounts and US National Accounts, Gross Output Versus Net Output, Sector Transactions
Famous quotes containing the words gross and/or output:
“In the gross and scope of mine opinion,
This bodes some strange eruption to our state.”
—William Shakespeare (1564–1616)
“Lizzie Borden took an axe
And gave her mother forty whacks;
When she saw what she had done,
She gave her father forty-one.”
—Anonymous. Late 19th century ballad.
The quatrain refers to the famous case of Lizzie Borden, tried for the murder of her father and stepmother on Aug. 4, 1892, in Fall River, Massachusetts. Though she was found innocent, there were many who contested the verdict, occasioning a prodigious output of articles and books, including, most recently, Frank Spiering’s Lizzie (1985)