intermediate consumption sentence in Hindi
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- Such rentals payable by lessees to lessors are treated as purchases of " services produced " by the leasing enterprises, and recorded either as intermediate consumption of renting enterprises, or as the final consumption of households or government.
- Thus, intermediate consumption is an accounting flow which consists of the total monetary value of goods and services " consumed or used up as inputs in production " by enterprises, including raw materials, services and various other operating expenses.
- In such cases it is necessary to distinguish whether items are intermediate consumption or, alternatively, a remuneration " in kind " to employees ( for example, fringe benefits such as company cars and meal tickets for private use ).
- Acquisition of goods and services is made through production by the government ( using the government's labour force, fixed assets and purchased goods and services for intermediate consumption ) or through purchases of goods and services from market producers.
- In national accounts such as the United Nations System of National Accounts ( UNSNA ) or the United States National Income and Product Accounts ( NIPA ), gross value added is obtained by deducting intermediate consumption from gross output.
- In modern national accounts, an empirical proxy of the depreciation charges + intermediate consumption; a stock measure of constant capital would be the fixed capital stock plus the average value of inventories held during the period of account ( usually a year ).
- However, because the " circulating " component of constant capital ( denoted " Cc " ) includes purchases of external services and other operating costs, the stock of Cc is sometimes measured as the flow of intermediate consumption divided by the average inventory level.
- Yet, if an enterprise owns its own buildings, machinery and equipment, most of the costs associated with their use are " not " recorded under intermediate consumption; depreciation charges are included in gross value added, and interest costs, both actual and implicit, are included in net operating surplus.
- Economic reproduction involves the physical " production " and " distribution " of goods and services, the " trade " ( the circulation via exchanges and transactions ) of goods and services, and the " consumption " of goods and services ( both productive or intermediate consumption and final consumption ).
- GFCF is " not " a measure of " total " investment, because only the value of net additions to fixed assets is measured, and all kinds of " financial " assets are excluded, as well as stocks of inventories and other operating costs ( the latter included in intermediate consumption ).
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