why expenditure on repair of fixed capital asset will not be included in national income?

Open in App

Solution

Hey Shivam,
As expenditure incurred on the repair of fixed assets is an intermediate cost therefore it will not be included in the national income accounting.

Suggest Corrections

Similar questions

Which of the following is not included in expenditure method of calculating national income?

From the following data calculate National income:

(a) Income method

(b) Expenditure method

(a) Compensation of employees 1200

(b) NFIA - 20

(d) Profit 800

(e) Private final consumption expenditure 2000

(f) Net domestic capital formation 770

(g) Consumption of fixed capital 130

(h) Rent 400

(i) Interest 620

(j) Mixed income of self-employed 700

(k) Net exports - 30

(l) Govt. final consumption exp. 1100

Which of the following will be included in National Income?

(a) Seeds purchased by a farmer

(b) Salary given to an Indian working in the Japanese embassy in India

(d) Imports by a household

Join BYJU'S Learning Program