In the national accounts 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

is a transaction of the national account's use of income account representing consumer spending. It consists of the expenditure incurred by households on individual consumption goods and services, including those sold at prices that are not economically significant...

. Government final consumption expenditure

Government final consumption expenditure

Government final consumption expenditure is a transaction of the national account's use of income account representing government expenditure on goods and services that are used for the direct satisfaction of individual needs or collective needs of members of the community .It consists of the...

is made for collective consumption or for individual consumption in the form of social transfers in kind to households. Also non-profit institutions serving households provide individual consumption goods and services to households free of charge or at reduced prices.