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InterviewSolution
| 1. |
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. |
| Answer» SOLUTION :Intermediate CONSUMPTION Expenditure : (i), (ii), (iv), (vi), (vii), Final Consumption Expenditure : (III), (V). | |