In National-Income Accounting,the Value of Intermediate Products

question 82

Multiple Choice

In national-income accounting,the value of intermediate products

• A)should always be counted as part of GDP in the expenditure approach.
• B)should be subtracted from the value of final goods in determining a firm's total value added.
• C)should be added to the value of other inputs in determining a firm's contribution to GDP.
• D)must equal the value added by the firm.
• E)is counted as factor income in the calculation of GDP from the income side.

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Definitions:

Financial Advantage

Refers to the benefit or upper hand that a business or individual has in a financial situation, often leading to better profitability or investment outcomes.

Common Fixed Costs

Costs that are shared by several segments, products, or projects of a company, not attributable directly to any individual segment.

Divisions

Separate units within a larger company, often structured around specific products, geographical locations, or market segments, each potentially with its own management.

Segment

Any part or activity of an organization about which managers seek cost, revenue, or profit data.