Production is an activity carried out under the control, responsibility and management of an institutional unit that uses inputs of labour, capital and goods and services to produce outputs of goods and services (P1). Purely natural processes without any human intervention or control are not part of production.
Output (P1) is the total of products created during the accounting period.
The production is most often intended to institutional units other than their producers but it can also be retained by their producers for their own final use.
Three types of output are distinguished:
- market output (P11);
- output produced for own final use (P12);
- non-market output (P13).