Is Expenditure on maintenance by a firm included/excluded in national income?
Is Expenditure on maintenance by a firm included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
No,
Expenditure on maintenance by a firm will not be included in the national income as it is a part of intermediate consumption expenditure.
Explanation:-
The cost of expenditure on maintenance by a firm is included in the final productive services derived from the building.
The national income only counts the value of final goods and services.
Thus adding the expenditure on maintenance by a firm will lead to double counting.
Anurag Pathak Changed status to publish December 9, 2023
