ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Depreciation is the part of capital stock that is gone after being used in production. The gross domestic product minus the depreciation yields the net domestic product.

Detailed explanation-2: -30. The net value of GDP after deducting depreciation from GDP is Net domestic product.

Detailed explanation-3: -Net domestic product (NDP) is an annual measure of the economic output of a nation that is calculated by subtracting depreciation from gross domestic product (GDP).

Detailed explanation-4: -Key Takeaways Net national product (NNP) is gross national product (GNP), the total value of finished goods and services produced by a country’s citizens overseas and domestically, minus depreciation.

Detailed explanation-5: -The source of the depreciation expense determines whether the expense is allocated between cost of goods sold or operating expenses. Some depreciation expenses are included in the cost of goods sold and, therefore, are captured in gross profit.