The problem of double counting is the problem of estimating the value of goods and services more than once. All enterprises treat their sales as final goods and services. This leads to the problem of double counting. This should be avoided because if the value of any commodity is counted more than once it will result in overestimation of the national income.
(i) Final goods and services method : We can avoid double counting by taking into account the value of final goods and services.
(ii) Value added method : This problem can be avoided by taking into account net value added at each stage of production. The value added of each enterprise is added.
