|Description||COPP deals with expenditures of producers and in particular with market producers of the (non-financial and financial) corporate sector (para. 18.14 of the 1993 SNA). For practical reasons, COPP may not be used to classify production-related expenditures of government, non-profit institutions serving households (NPISHs) and households, as the bulk of production of these sectors is allocated to their final consumption expenditures, which are well analysed through the use of COFOG, COPNI and COICOP.|
Outlays of enterprises by purpose may be divided into current and capital expenditures. Capital expenditures include capitalized current expenditures (treated as gross capital formation in the 1993 SNA), investment in produced fixed assets (also treated as gross capital formation in the 1993 SNA) and investment in non-produced fixed assets. Current operating expenditures include outlays on intermediate goods and services, compensation of employees, other taxes on production less subsidies, consumption of capital and operating surplus. Capitalized current expenditures are outlays of enterprises, for instance, to develop software, to construct roads or to carry out major repairs or improvement of capital goods.
COPP (and also the other classifications of expenditure according to purpose) have two distinct roles in analysis. The first one is to serve analysis of expenditures across sectors and the second one encompasses sectorspecific