Which of the following expenses comes under the factor of capital in the production process?

Money spent to buy equipments

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Paying labourers

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Buying land

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Marketing

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Solution

The correct options are
A Money spent to buy equipments
B Paying labourers
All visible and man-made things used for manufacturing another product is known as capital. The money spent to pay salaries of workers and to buy equipments also comes under the factor of capital in the production process.

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Which of the following comes under category expense?

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