DSpace at Khazar University
DSpace at Khazar University
DSpace at Khazar University
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transfer herself cost to new product. In other words value gener<strong>at</strong>ed in previous<br />
production process is also embodied in value of produced product. This value is the cost<br />
consumed during the production of new product. Final consumption is the cost of raw<br />
m<strong>at</strong>erial and m<strong>at</strong>erials used (consumed) in the stage of reproduction. It is a cross-sectoral<br />
consumption and named intermedi<strong>at</strong>e consumption expenditures.<br />
Intermedi<strong>at</strong>e consumption expenditures are defined on the base of purchase price<br />
of raw m<strong>at</strong>erial and m<strong>at</strong>erials production areas have bought. This price in many times is<br />
called consumer price.<br />
Intermedi<strong>at</strong>e consumption expenditures are calcul<strong>at</strong>ed as the product of physical<br />
volume (quantity) of raw m<strong>at</strong>erial and m<strong>at</strong>erials used in the production process and their<br />
consumer price. Depreci<strong>at</strong>ion of fixed assets and wage paid to employers is not included<br />
in intermedi<strong>at</strong>e consumption expenditures.<br />
New gener<strong>at</strong>ed (added) value (N v ). New value gener<strong>at</strong>ed in current production<br />
process is the value of the living labor. When calcul<strong>at</strong>ing it intermedi<strong>at</strong>e consumption<br />
expenditures (cost of previous labor, m<strong>at</strong>erialized cost) are deducted from the value of<br />
output (total value). Or the following formula is used:<br />
Y d = D-A x (1),<br />
New gener<strong>at</strong>ed (added) value is used in calcul<strong>at</strong>ion of n<strong>at</strong>ion-wide indic<strong>at</strong>ors such<br />
as GDP (Gross Domestic Product) and n<strong>at</strong>ional income. In many times three difference<br />
indic<strong>at</strong>ors presented there are identified. But their meaning is not the same, they are<br />
different indic<strong>at</strong>ors used for various aims.<br />
New gener<strong>at</strong>ed (added) value is the most important indic<strong>at</strong>or used for evalu<strong>at</strong>ion<br />
of final result of production, analysis of economic areas.<br />
GDP is a sum of new gener<strong>at</strong>ed (added) value of economic areas, it includes<br />
taxes on products and imports, and subsidies (aids) on products and imports are deducted<br />
from it.<br />
GDP is most aggreg<strong>at</strong>e indic<strong>at</strong>or characterizing the level of production, power,<br />
facilities, development tendency of n<strong>at</strong>ional economy. GDP includes also the results of<br />
economic activity of foreign countries’ citizens in the Azerbaijan.<br />
N<strong>at</strong>ional income is calcul<strong>at</strong>ed according to GDP. The results of economic activity<br />
of foreign countries’ citizens in the Azerbaijan are not included in this indic<strong>at</strong>or, but<br />
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