giving reasons certify whether the the expenditure are final or intermediate exp.
1) on maintenance of office building
2) on improvement of a machine in a factory
3) purchase of furniture by a firm

Hey Aman,

1. The expenditure on maintenance of an office building and expenditure for the improvement of a machine in a factory will be considered as intermediate expenditure. This is because such expenditures are made to enhance the already existing operations of the firm.

2. Purchase of furniture by a firm is a final good  as it is purchased by the firm for long-term final consumption . However,  if the same furniture is purchased by a furniture producing firm , then it will be considered as an Intermediate good as it will be used by the firm as a raw material for resale or further value addition.

Keep Posting!!


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