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Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees?
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Which of the following expenditures incurred are on intermediate produ...
Expenditures on Intermediate and Final Products
Definition of Intermediate and Final Products
Intermediate products are goods or services that are used in the production of other goods or services. They are not sold directly to consumers. Final products are goods or services that are sold to consumers for their own use or consumption.
Expenditures and Analysis
1. Purchase of ticket for train journey by an individual - Final product
- The individual is purchasing a ticket for their own personal use and consumption.
- They are not using the ticket to produce or create another good or service.
- Therefore, this is an expenditure on a final product.
2. Purchase of eatables by a firm - Intermediate product
- The firm is purchasing eatables to use as inputs in their production process.
- They will use the eatables to create a final product that will be sold to consumers.
- Therefore, this is an expenditure on an intermediate product.
3. Purchase of a car by an employer for office use by his employees - Intermediate product
- The employer is purchasing a car to use as an input in their production process.
- The car will be used to transport employees to and from the office and for other work-related purposes.
- Therefore, this is an expenditure on an intermediate product.
Conclusion
Determining whether an expenditure is on an intermediate or final product depends on the intended use of the product. If the product is used as an input in the production process, it is an intermediate product. If it is purchased for personal use or consumption, it is a final product.
Definition of Intermediate and Final Products
Intermediate products are goods or services that are used in the production of other goods or services. They are not sold directly to consumers. Final products are goods or services that are sold to consumers for their own use or consumption.
Expenditures and Analysis
1. Purchase of ticket for train journey by an individual - Final product
- The individual is purchasing a ticket for their own personal use and consumption.
- They are not using the ticket to produce or create another good or service.
- Therefore, this is an expenditure on a final product.
2. Purchase of eatables by a firm - Intermediate product
- The firm is purchasing eatables to use as inputs in their production process.
- They will use the eatables to create a final product that will be sold to consumers.
- Therefore, this is an expenditure on an intermediate product.
3. Purchase of a car by an employer for office use by his employees - Intermediate product
- The employer is purchasing a car to use as an input in their production process.
- The car will be used to transport employees to and from the office and for other work-related purposes.
- Therefore, this is an expenditure on an intermediate product.
Conclusion
Determining whether an expenditure is on an intermediate or final product depends on the intended use of the product. If the product is used as an input in the production process, it is an intermediate product. If it is purchased for personal use or consumption, it is a final product.
Community Answer
Which of the following expenditures incurred are on intermediate produ...
First and the second will be the final expenditure andast will be the intermediate expenditure
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Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees?
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Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees?.
Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following expenditures incurred are on intermediate products and which are on final products? you must state reason for your answer 1 purchase of ticket for train journey by an individual 2 purchase of eatables by a firm 3 purchase of a car by an employer for office use by his employees?.
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