CBSE Class 12-commerce Answered
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.
Asked by sanjana30yadav | 23 Apr, 2018, 10:20: PM
Expert Answer
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. So, this will be treated as final expenditure.
Answered by Tharageswari S | 24 Apr, 2018, 09:41: AM
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