What are the precautions to be taken while calculating national income

1.	What are the precautions to be taken while calculating national income through product method (value added method)
Answer» 1. Avoid double counting of production, take only value added by each production unit. 2. The output produced for self-consumption to be included 3. The sale & purchase of second hand goods should not be included. 4. Value of intermediate consumption should not be included 5. The value of services rendered in sales must be included.

What are the precautions to be taken while calculating national income through product method (value added method)

Answer»

1. Avoid double counting of production, take only value added by each production unit.

2. The output produced for self-consumption to be included

3. The sale & purchase of second hand goods should not be included.

4. Value of intermediate consumption should not be included

5. The value of services rendered in sales must be included.