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Why do national accountants compare the market value of the total outputs in various years rather than actual physical volumes of production?
Wiki User
∙ 10y ago
Physical outputs are such astronomical numbers along with varying metrics for counting them it is so far impossible to add them all up. Also, each year the prices of these products can shift and therefore measuring physical amount may lead to false conclusions such as selling more of a product one year however the net profit remains the same (because the product was cheaper).
Harley Cassin
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Why do national income accountants compare the value of the total outputs in various years rather than actual physical volumes of production?
Physical outputs are such astronomical numbers along with varying metrics for counting them it is so far impossible to add them all up. Also, each year the prices of these products can shift and therefore measuring physical amount may lead to false conclusions such as selling more of a product one year however the net profit remains the same (because the product was cheaper).
The most accurate way to compare standards of living throughout the world is to look at?
(GDP) Gross Domestic Production
What are the similarities and differences between the contributions of primary and tertiary production activities to the development of Nigeria and England?
compare and contrast the contribution of primary and tertiary production activities to the development of Nigeria and us
Uses of national income?
Uses of National Income Data:- 1:National Income as a measure of economic growth - Estimates of national income at constant prices indicate economic growth of a country. 2:National Income as an indicator of success or failure of planning - If a country has adopted planning as a means of economic growth then national income data can help in assessing the achievements of planning. 3: Useful in estimating per capita income - Per capita income is obtained by dividing national income by total population of the country. 4:Useful in assessing the performance of different production sectors - Production units of a country are broadly classified into primary, secondary and tertiary sectors. These sectors generate factor incomes. The data on factor incomes generated by these sectors can be used to measure their relative contributions to national income. 5:Useful in measuring inequalities in the distribution of income - All individuals so not have the same income. It means national income is unequally distributed among people. The extent of inequality in a country can be measured from the national income data collected through the income distribution methods. 6:Useful in measuring standards of income - The expenditure method reveals consumption expenditure and investment expenditure. If the total consumption expenditure is divided by the total investment expenditure we get per capita consumption expenditure which indicates the average standard of living of the people of the country. 7:Makes international comparisons possible - We can compare the economies of any two countries on the basis of their national income data.
Why production output increased but labor cost decreased?
when production output increases, labour hours decreases due to term called "Learning Curve"Learning Curve: LC provides us the answer of this situation and elaborate that when the production of units goes double there is less time required to make them as compare to the first unit of that product to produce.It is very simple in daily life as well as when somebody do any work first time it take him much more time to do it then doing it again and again so this happens in manufacturing as well and that's why labour hours reduces as production units increases.
Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production?
Physical outputs are such astronomical numbers along with varying metrics for counting them it is so far impossible to add them all up. Also, each year the prices of these products can shift and therefore measuring physical amount may lead to false conclusions such as selling more of a product one year however the net profit remains the same (because the product was cheaper).
Why do national income accountants compare the value of the total outputs in various years rather than actual physical volumes of production?
Physical outputs are such astronomical numbers along with varying metrics for counting them it is so far impossible to add them all up. Also, each year the prices of these products can shift and therefore measuring physical amount may lead to false conclusions such as selling more of a product one year however the net profit remains the same (because the product was cheaper).
What do accountants use a spreadsheet for?
to compare last year to this year
Do Compare physical policy and monetary policy?
yes
How does the performance of a virtual machine compare to that of a physical machine?
The performance of a virtual machine is much faster compare to that of a physical machine. You can read more information at en.wikipedia.org/wiki/Virtual_machine
Texas to Japan compare?
Texas and Japan are both heavily into rice production.
How do you compare rocks with other rocks?
By using their physical characteristics
Compare virtual and physical keyboard?
advantages of virtual keyboard?
Compare and contrast cylic and non-cylic ATP production on photosynthetic organisms?
sunlight
How do obligations of the national government to states compare to obligations of states to the national government?
pay for all national elections To protect states from invasion.
How do the obligations of the national government to states compare to obligations of states of the national government?
pay for all national elections To protect states from invasion.
How do the obligations of the national government states compare to obligations of states to the national government?
pay for all national elections To protect states from invasion.
