How is the company s inventory included in GDP, and why is inventory included in GDP

Expired inventory (final unsold) and unsalable inventory (final sale) are included in GDP.

First of all, the product is going to enter the next production link, and secondly, if it is the inventory of the rough processing manufacturer, why should it be recorded in the GDP.

The reasons for this are: if the inventory is the final manufacturer's, then it is obviously recorded in the current year's GDP; The reason why the inventories of products and other manufacturers are recorded in GDP is because this part of the value is formed this year, and the part of their value-added in the next production process is recorded in next year's GDP.

Accounting in the actual production process is an accounting process.

In the accounting of products and survival, they are classified under the "inventory" item, and in the statistical process, they are counted together and recorded under the GDP inventory item.

3.Why is the value of inventories recorded in GDP without being exchanged?

The reason is that according to the production method, the value of inventories constitutes the production cost of the enterprise and forms the factor income, so it should be included in the GDP.

Don't be afraid to maliciously brush points.

Persist in the pursuit of truth and true knowledge.

Inventories actually include raw materials, work-in-progress and manufactured goods that have not been sold. It can be seen that some inventories must be held in the production process of enterprises.

GDP refers to the sum of the market value of final goods and services produced by an economy over a given period of time.

Current inventories are included in GDP as an investment by the enterprise. In the following period, if the inventory is sold, it will increase the volume of the consumer account, and obviously, the increase in this area is not created in the current period, so the solution is to subtract the same amount from the inventory account.

Answer: Inventory refers to the products or commodities held by the enterprise in its daily activities, the products in the production process, the materials or materials used in the production process or the provision of labor services, etc., including all kinds of materials, products, semi-finished products, finished products, commodities and packaging, low-value consumables, and consignment goods, which add up.

In the accounting of GDP, inventories are included in investments as inventory investments.

Summary. Hello dear, the reason why inventories are included in GDP is GDP calculated according to the expenditure method = final consumption + gross capital formation + net exports of goods and services = (household consumption + consumption of relevant sectors) + (gross fixed capital formation + increase in inventories) + (exports of goods and services - imports of goods and services). Therefore, an increase in inventories will increase the investment in gross capital formation, that is, GDP, and conversely, when the inventory is sold, it will reduce the investment in GDP.

Hello dear, the reason why inventories are included in GDP is that GDP calculated according to the expenditure method = final consumption + gross capital formation + net exports of goods and services = (household consumption + consumption by relevant sectors) with states + (gross fixed capital formation + increase in inventories) + (exports of goods and services - imports of goods and services). Therefore, an increase in inventories will increase the investment in gross capital formation, that is, in GDP, and conversely, when the inventory is sold, it will reduce the investment in GDP.

There are three accounting methods for GDP: the production method, the income method and the expenditure method. GDP: GDP (gross domestic product) is the final result of the production activities of all resident units of a country (or region) in a certain period of time.

GDP is the core indicator of national accounting, and it is also an important indicator to measure the economic status and development level of a country or region. On January 17, 2020, the National Bureau of Statistics announced that China's gross domestic product (GDP) in 2019 was one trillion yuan, ranking second in the world. GDP per capita reached a new level of $10,000 for the first time. On May 23, 2020, the report of relevant departments proposed that there would be no specific target for GDP growth in 2020. Sideways.

Ignoring inventories when calculating GDP?

You're in a good position, dear! Very close Qingxing for you to answer. Lunch boxes should not be overlooked when GDP.

Inventory accounting: Measurement of the inventory value of an enterprise Inventory refers to various assets stored by an enterprise for sale or consumption in the process of production and operation, including commodities, finished products, semi-finished products, work-in-progress, various materials, fuels, packaging, low-value consumables, etc. Inventory is a necessary condition to ensure the smooth progress of the production and operation process of an enterprise. In order to ensure the continuity of the production and operation process, enterprises must constantly purchase, consume or sell inventory.

Inventory is an important current asset of an enterprise, and its value accounts for a large proportion of the current assets of the enterprise.

Why is inventory counted as capital and inventory changes counted as investment?

Answer. In general, the inventory of an enterprise includes the following three types of tangible assets: finished products, products in progress, and raw materials.

Inventory stored in the ordinary course of business for the first time. This refers to various items that are in a state of waiting for sale in the normal process of an enterprise, such as the inventory of finished products of industrial enterprises and the inventory of commodity circulation enterprises.

In order to finally ** is in the production process of inventory. This refers to various items that are in the process of production and processing for the final time, such as products in process of industrial enterprises, self-made semi-finished products and commissioned processing materials.

Inventory for the production of goods for sale or provision of services for consumption. This refers to the various raw materials, fuels, packaging, low-value consumables, etc., that enterprises reserve for the production of products or the provision of labor consumption.

Capital is the various means of production capable of enhancing the services of production. For manufacturers, the inventory is like equipment, which can provide some kind of service for production. For example, inventory investment, as a finished product, can meet the needs of the market at any time, and at the same time, the production process is continuously maintained, and the enterprise has sufficient raw material reserves.

And some of the materials are in the process of processing. It can be seen that inventory is indispensable for the normal operation of manufacturers and constitutes a part of the capital stock.