What Is a Manufacturing Account?

The production account is an account used to reflect national income and production. Also called "national income and production account." It is the basis of national economic accounting. The basic principles of national income and national production estimated by value added can be summarized as follows: (1) The income statement (income statement) of individual enterprises is converted into a production statement, but the sales in the income statement are not produced in the current period, The difference is the change of inventory at the beginning and end of the period. In order to represent the production results of the enterprise for the current year, the balance of the inventory at the beginning and end of the period should be adjusted in the source of this account. This account is used by production costs and profits. (2) Change the production schedule of individual enterprises to the production accounts of departmental enterprises, and take the net amount of the remuneration of relevant factors. When calculating the added value, the intermediate input should be deducted so that the production (expenditure) of this account (the original The flow of products from the source) is consistent with the flow of income from the source (the user of the original production schedule). (3) When compiling departmental production tables, offset the purchases and sales in current accounts between enterprises, and add the final consumption of residents, governments, foreigners, and capital accounts to indicate the completion of the current period. Gross national product. (4) Combine the income and expenditure tables of various departments to complete the calculation of national income and production accounts. In strengthening macroeconomic regulation and control, people often use the indicator system provided by the production account for international comparisons to predict economic development prospects, formulate plans, and compile national budgets. ^[1]