Anything produced by business that has not been sold during
the accounting period is something in which business has invested—even if the
“investment” is involuntary, as often is the case with inventories. But all inventories in the hands of business
are expected eventually to be used by business—for instance, a pile of bricks
for extending … Read more
Because the output is directly related to money circulated (spent),
which, in essence, is also the revenue. (Income).