You have to know that Gross includes Depreciation... And market price includes all the taxes... So...for calculation.. You have to add depreciation to domestic income, i.e; NDP at FC + depreciation....you will now get GDP at FC... Factor cost doesn't include Net Indirect TAX...so you have to add that...and you'll get the answer.... NDP at FC + depreciation + NIT = GDP at MP
Net Domestic Product NDP
total income and total expenditure are included when calculating GDP.
the GDP would be overstated
GDP is the value of all the goods and services produced in the country in one year. Money earned outside of the country is not included.
You have to know that Gross includes Depreciation... And market price includes all the taxes... So...for calculation.. You have to add depreciation to domestic income, i.e; NDP at FC + depreciation....you will now get GDP at FC... Factor cost doesn't include Net Indirect TAX...so you have to add that...and you'll get the answer.... NDP at FC + depreciation + NIT = GDP at MP
Yes depreciation is included in contribution income statement as depreciation is part of fixed cost of company.
Net Domestic Product NDP
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
total income and total expenditure are included when calculating GDP.
the GDP would be overstated
GDP is the value of all the goods and services produced in the country in one year. Money earned outside of the country is not included.
Yes, taxes are not included in the calculation of GDP. GDP measures the total value of goods and services produced within a country's borders, excluding taxes.
The vehicle's rate of depreciation
Yes, investments are included in GDP calculations. This includes business investments in equipment, structures, and residential construction.
No, transfer payments are not included in GDP calculations because they do not represent actual production of goods and services.
Yes, wages are included in the calculation of GDP as they represent the total income earned by individuals in an economy from their work.