In actual accounting, there are three methods of calculating GDP, namely the production method, the income method and the expenditure method.
1. The production method is to calculate GDP from the perspective of producers, and sum up the market value of final products and services produced by various production sectors in a country. For example, if there are m enterprises that produce n kinds of final products, then according to the production law, as long as the market value of n kinds of final products is summed up. It should be noted here that service activities do not produce in kind, but can generate the same remuneration for labor (e.g., the labor services of doctors and lawyers), so they are also regarded as productive activities. The core of the production method is the "final product", and it is necessary to avoid counting intermediate products, otherwise it will lead to double counting.
2. The accounting of the added value of the income method is completed by the production and operation income of each enterprise legal entity calculated according to the producer's **. The so-called producer is what the producer actually pays for his product. It is basically equal to the social ex-factory price of goods at social cost. The basic formula for calculating the income method value added is:
Gross domestic product (GDP) based on income method = remuneration of workers + net production tax + depreciation of fixed assets + operating surplus.
Among them: the remuneration of workers refers to the part of the personal consumption of workers obtained from various **, including wages, bonuses and allowances;
Net production tax refers to the balance of various taxes and fees levied by the state on enterprises and other economic entities after deducting production subsidies
The depreciation of fixed assets refers to the part of the value transferred to products or services due to the use of fixed assets in the production process of material materials;
Operating surplus refers to the profit of a business plus dividends and bonuses from non-business owners, etc.
3. The expenditure method GDP is the accounting of GDP from the perspective of final demand, which is simply to add up all the money you spend on buying the final product. To calculate GDP using the expenditure method, the first step is to subtract the sales value of each final product from the original GDP to obtain the GDP defined by the production method. Then, the value of the subtracted part of the final product is multiplied by the corresponding output weight (for example, the aforementioned car is multiplied by the subtracted value of the automobile production as the proportion of the total final product output), and the GDP defined by the expenditure method can be obtained. The core of the expenditure method is to distinguish between final demand, which reflects consumption demand and investment demand, and intermediate demand, which reflects demand for purchases and net exports.