In the
national accounts
National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. These include detailed underlying measures that rely on double-entry ...
expenditure on goods and services that are used for the direct satisfaction of individual needs (''individual consumption'') or collective needs of members of the community (''collective consumption'') is recorded in the use of income account under the transaction final consumption expenditure (FCE).
The most important part of final consumption expenditure is
household final consumption expenditure
Household final consumption expenditure (POES) is a transaction of the national account's use of income account representing consumer spending. It consists of the expenditure incurred bresidenthouseholds on individual consumption goods and service ...
.
Government final consumption expenditure Government final consumption expenditure (GFCE) is an aggregate transaction amount on a country's national income accounts representing government expenditure on goods and services that are used for the direct satisfaction of individual needs (''i ...
is made for collective consumption or for individual consumption in the form of social transfers in kind to households. Als
non-profit institutions serving householdsprovide individual consumption goods and services to households free of charge or at reduced prices.
References
*Eurostat
National accounts website*Eurostat
Final consumption expenditure in Statistics Explained
*F. Malherbe
Le site de la comptabilité nationale
{{Consumption
National accounts
Consumption (macroeconomics)
Expenditure