Net Product, an economic indicator characterising newly created value, the most important result of the activity of enterprises, associations and industries. The sum total of the net product of all sectors of material production comprises a country’s national income. The expenditure of living labour is embodied in the net product as distinct from the gross output, which embodies the expenditure of both living and materialised labour. Net product is assessed by deducting from the gross output (of an enterprise, association or industry) the material expenditure for its production (the cost of raw and other materials, purchased semi-products, fuel, power, wear and tear of fixed assets). Calculated in the wholesale prices of enterprises (without the turnover tax) the net product is divided into wages and profit in ratios determined by the conditions of production and distribution. In Soviet industry on the whole, net product comprises over 25 per cent of the gross output, and nearly 35 per cent with the turnover tax included. Net product increases with the increase in the number of workers (outlays of working time), higher labour productivity and economical use of the means of production (material expenditures on production). Changes in the net product-worker (or net product-working time) ratio characterise the dynamics of use of both living and materialised labour. The net product indicator is used widely for analytical aims, primarily for studying how to raise production efficiency, and also to determine the volume of the national income. The annual reports of enterprises on gross output and production expenditures are used to calculate the net product. No assignments for the growth of the net product are set, because the rated net product indicator is used for this purpose in the manufacturing industries.