What precautions (any four) should be taken while estimating national income by expenditure method.

(i) Do not include expenditure on transfer payment.

(ii) Do not include expenditure on purchase of financial assets.

(iii) Do not include expenditure on purchase of second hand goods.

(iv) Do, not include expenditure on intermediate goods.

Precaution:

(i) Expenditure on intermediate goods should not be included, only expenditure on final goods should be included.

(ii) Estimated expenditure on production for self consumption should be included.

(iii) Transfer of payments should not be included.

(iv) Expenditure on financial assets should not be included.