capital consumption allowance

Definition

The percentage of the GDP which is due to depreciation. GDP minus capital consumption allowance equals net national product. The capital consumption allowance measures the amount of expenditure that a country needs to undertake to simply maintain, as opposed to grow, its productivity.

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You should try to make sure that you are not doing anything to go over the capital consumption allowance you set.

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The capital consumption allowance was a really cool way to determine depreciation and I liked how it was created and how it worked.

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When analyzing the capital consumption allowance, Winston realized that the amount of depreciation in the economic cycle was quite pronounced.

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consumption allowance