gross primary productivity

Examples of gross primary productivity in the following topics:

• Productivity within Trophic Levels

  • Productivity, measured by gross and net primary productivity, is defined as the amount of energy that is incorporated into a biomass.
  • The rate at which photosynthetic primary producers incorporate energy from the sun is called gross primary productivity.
  • An example of gross primary productivity is the compartment diagram of energy flow within the Silver Springs aquatic ecosystem .
  • The net productivity is then available to the primary consumers at the next trophic level.
  • Explain the concept of primary production and distinguish between gross primary production and net primary production

• Cost of Goods Sold and Gross Profit

  • Gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service.
  • In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service before deducting overhead, payroll, taxation, and interest payments.
  • Explain the difference between cost of goods sold and gross profit

• Profit Margin

  • Recall that gross profit is simply the revenue minus the cost of goods sold (COGS).
  • Net profit is the gross profit minus all other expenses.
  • The gross profit margin calculation uses gross profit and the net profit margin calculation uses net profit .
  • Companies need to have a positive profit margin in order to earn income, although having a negative profit margin may be advantageous in some instances (e.g. intentionally selling a new product below cost in order to gain market share).
  • The percentage of net profit (gross profit minus all other expenses) earned on a company's sales.

• Recording Sales

  • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.
  • From an accounting standpoint, sales do not occur until the product is delivered.
  • Gross sales are the sum of all sales during a time period.
  • Gross sales do not normally appear on an income statement.
  • Net sales are operating revenues earned by a company for selling its products or rendering its services.

• What Is R&D?

  • The primary function of R&D is to develop new products or discover and create new knowledge about scientific and technological topics.
  • The activities that are classified as R&D differ from company to company, but there are two primary models.
  • In one model, the primary function of an R&D group is to develop new products; in the other model, the primary function of an R&D group is to discover and create new knowledge about scientific and technological topics for the purpose of uncovering and enabling development of valuable new products, processes, and services.
  • The extreme needs justify the high risk of failure and consequently high gross margins from 60% to 90% of revenues.
  • Gross profits will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product.

• Gross Domestic Product

  • consumption + gross investment + government spending + (exports − imports)
  • The production approach is also known as the Net Product or Value Added method.
  • Estimating the gross value of domestic output in various economic activities;
  • For measuring gross output of domestic product, economic activities (i.e. industries) are classified into various sectors.
  • Depreciation (or capital consumption allowance) is added to get from net domestic product to gross domestic product.

• Sample Income Statement

  • The more complex Multi-Step income statement takes several steps to find the bottom line, starting with the gross profit.
  • Every time a business sells a product or performs a service, it obtains revenue, which is often referred to as 'gross' or 'sales revenue. '
  • SGA is usually understood as a major portion of non-production costs, in contrast to production costs like direct labor.
  • Other revenues or gains: Revenues and gains from non-primary business activities (rent, patent income, goodwill).
  • Other expenses or losses: Expenses or losses not related to primary business operations (foreign exchange loss).

• Other Approaches to Calculating GDP

  • Gross domestic product provides a measure of the productivity of an economy specific to the national borders of a country .
  • GDP calculated in this manner is sometimes referenced as "Gross Domestic Income" (GDI).
  • Depreciation (or Capital Consumption Allowance) is added to get from net domestic product to gross domestic product.
  • GDP = compensation of employees + gross operating surplus + gross mixed income + taxes less subsidies on production and imports.
  • So, adding taxes less subsidies on production and imports converts GDP at factor cost (as noted, a net domestic product) to GDP.

• Impacts of Technological Change on Productivity

  • Productivity growth is bound by what is called the production-possibility frontier (PPF), which essentially stipulates a series of maximum amounts of two commodities that can be generated using a fixed amount the relevant factors of production .
  • This is a critical component in understanding the role of technology in productivity, as it is a primary influence on increasing the prospective production possibilities.
  • The variance in technological advances that have driven productivity upwards is remarkable, underlining the ongoing importance of focusing on technology as a primary change agent.
  • Energy: Historically, animals and humans were the primary energy input for the generation of products.
  • It is generally approached through metrics such as Gross Domestic Product (GDP), GDP per capita, and Total Factor Productivity (TFP).

• Income Statements

  • It then calculates operating expenses and, when deducted from the gross profit, yields income from operations.
  • This often is referred to as gross revenue or sales revenue.
  • SGA is usually understood as a major portion of non-production related costs, in contrast to production costs such as direct labour.
  • Other revenues or gains - revenues and gains from other than primary business activities (e.g., rent, income from patents).
  • Other expenses or losses - expenses or losses not related to primary business operations, (e.g., foreign exchange loss).