Välituotekulut

Välituotekulut, a Finnish term, translates to intermediate consumption in English. It refers to the value of goods and services that are consumed as inputs in the production process by resident producers. These are goods and services that are used up, transformed, or incorporated into other goods and services during the production cycle. Examples include raw materials, components, fuel, electricity, and services like repair, maintenance, and transportation.

The concept of intermediate consumption is crucial in national accounting, particularly in the calculation of Gross Domestic Product (GDP). GDP is calculated using the production approach as the sum of gross value added of all resident producer units. Gross value added is defined as output minus intermediate consumption. Therefore, understanding and accurately measuring intermediate consumption is essential for obtaining a correct estimate of a country's economic output.

Intermediate consumption is distinguished from fixed capital consumption (depreciation), which represents the wear and tear on fixed assets used in production over time, and from final consumption expenditure, which represents spending by households, government, and non-profit institutions serving households on goods and services for direct satisfaction of needs and wants. Intermediate consumption is essentially the cost of materials and services purchased by businesses to produce other goods and services. It represents a cost of production and is not part of the final value of the output.