<P> A model used here is a typical production analysis model by help of which it is possible to calculate the outcome of the real process, income distribution process and production process . The starting point is a profitability calculation using surplus value as a criterion of profitability . The surplus value calculation is the only valid measure for understanding the connection between profitability and productivity or understanding the connection between real process and production process . A valid measurement of total productivity necessitates considering all production inputs, and the surplus value calculation is the only calculation to conform to the requirement . If we omit an input in productivity or income accounting, this means that the omitted input can be used unlimitedly in production without any cost impact on accounting results . </P> <P> The process of calculating is best understood by applying the term ceteris paribus, i.e. "all other things being the same," stating that at a time only the impact of one changing factor be introduced to the phenomenon being examined . Therefore, the calculation can be presented as a process advancing step by step . First, the impacts of the income distribution process are calculated, and then, the impacts of the real process on the profitability of the production . </P> <P> The first step of the calculation is to separate the impacts of the real process and the income distribution process, respectively, from the change in profitability (285.12--266.00 = 19.12). This takes place by simply creating one auxiliary column (4) in which a surplus value calculation is compiled using the quantities of Period 1 and the prices of Period 2 . In the resulting profitability calculation, Columns 3 and 4 depict the impact of a change in income distribution process on the profitability and in Columns 4 and 7 the impact of a change in real process on the profitability . </P> <P> The accounting results are easily interpreted and understood . We see that the real income has increased by 58.12 units from which 41.12 units come from the increase of productivity growth and the rest 17.00 units come from the production volume growth . The total increase of real income (58.12) is distributed to the stakeholders of production, in this case 39.00 units to the customers and to the suppliers of inputs and the rest 19.12 units to the owners . </P>

They use goods and services to satisfy wants and needs