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Gross Output
 

Gross Output, indicator characterising in monetary form the overall volume of production of enterprises, associations, industries and the economy as a whole. It is calculated for the sectors of material production (industry, agriculture, construction, transport and communications, trade, material and technical supplies, etc.) in comparable and current prices. The gross output of an industrial enterprise is the useful result of its industrial and productive activities expressed in the form of products and industrial-type services; the gross output of an industry is the result of the productive activities of the enterprises making up the given industry for a fiscal period. Gross output includes: the value of finished articles produced in the principal, auxiliary, allied and service shops during the fiscal period; the value of the enterprise’s semi-finished products and that of products put out by its service and auxiliary shops and delivered beyond the given enterprise; the value of all industrialtype work carried out for other enterprises or for the given enterprise’s non-productive departments and organisations ( including capital repairs and the updating of its equipment and transport facilities); the change in the remainder (the value of the increase or decrease) of the enterprise’s basic semi-finished products and the output of its auxiliary shops. At enterprises with an extended production cycle, the change in the remainder (the value of the increase or decrease) of the work in process (see Production, Incomplete) is also included in the gross output. Using the gross output as an indicator to assess the economic activity of enterprises revealed its essential shortcomings (it insufficiently oriented enterprises towards producing articles that were in fact required by the economy and the people, and often interfered with extending the range of goods, improving quality, etc.). That is why to assess the activities of industrial enterprises and associations, the indicator of rated net product has now been introduced in the USSR. The sum of the gross output of all sectors of material production minus production circulation within enterprises represents the gross output of the economy, or the gross social product, calculated by the factory method.

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