Giving reason identify whether the following are final expenditures or intermediate expenditure : (i) Expenditure on maintenance of an office building

Question

Giving reason identify whether the following are final expenditures or intermediate expenditure : (i) Expenditure on maintenance of an office building

Giving reason identify whether the following are final expenditures or intermediate expenditure :
(i) Expenditure on maintenance of an office building.
(ii) Expenditure on improvement of a machine in a factory.

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

Expenditure on maintenance of office building is an input in the production of final good. So, this will be treated as intermediate expenditure. Expenditure on improvement of machinery in a factory is an addition to the existing capital.

4 views Answered 2023-02-05 15:29