ABSTRACT
Major planning target, and statistical target, is the "gross output". Most criticisms against this target are concerned with multiple counting as a product passes through several stages of manufacturing. The biggest weakness of the "gross output" target lies in its inability to adjust to enterprise management that is production needs. This is because "gross output" includes both newly created value and transferred value. The "gross output" target often does not encourage the producers to save materials or to substitute cheaper ones for more expensive ones. Our "gross output" target is computed at constant prices. Product quantity is admittedly a very important planning target. Without this target, it is not possible to compute material balance for the national economy. In fact, prices that are too high or too low disrupt the proportional relationships and economic accounting in the national economy.
