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Business Definition for: capital consumption allowance
capital consumption allowance
amount of depreciation included in the Gross Domestic Product (GDP), normally around 11%. This amount is subtracted from GDP, on the theory that it is needed to maintain the productive capacity of the economy, to get net national product (NNP). When adjusted further for indirect taxes, NNP equals national income. Economists use GDP rather than NNP in the analyses we read every day largely because capital consumption allowance figures are not always available or reliable.
See also depreciationcapital consumption allowance
amount of depreciation included in the Gross Domestic Product (GDP) , normally around 11% of GDP. This amount is subtracted from GDP, on the theory that it is "used up" during the year, to arrive at net national product.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
