Classify the following expenditures as intermediate consumption expenditure and final consumption expenditure. (i) Expenditure on research and develop
Classify the following expenditures as intermediate consumption expenditure and final consumption expenditure.
(i) Expenditure on research and development by Tata.
(ii) Insurance premium paid by a firm to an insurance company.
(iii) Insurance premium paid by households to an insurance company.
(iv) Expenditure on repairs and maintenance of plant and machinery.
(v) Expenditure incurred by a firm on purchase of equipments.
(vi) Advertising expenditure incurred by Airtel on promotion of its products.
(vii) Business expenses of the employees on tour and entertainment.
1 Answers
Intermediate Consumption Expenditure : (i), (ii), (iv), (vi), (vii), Final Consumption Expenditure : (iii), (v).