Giving reason and identify whether the following are final expenditure or intermediate expenditure:
Giving reason and identify whether the following are final expenditure or intermediate expenditure:
(i) Expenditure on maintenance of an office building.
(ii) Expenditure on improvement of a machine in a factory.
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i) Expenditure on maintenance of an office building- Final Expenditure
Reason- It is for consumption purpose, so it is considered as final expenditure.
(ii) Expenditure on improvement of a machine in a factory - Final expenditure.
Reason - It is a kind of Capital investment. So it is considered as final expenditure.
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