Question : Expenditure on advertisement and public relations by an enterprise is a part of its:
Option 1: consumption of fixed capital
Option 2: final consumption expenditure
Option 3: intermediate consumption
Option 4: fixed capital
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Correct Answer: intermediate consumption
Solution : The correct answer is intermediate consumption .
An enterprise's expenditure on advertising and public relations is a component of its intermediate consumption. The value of products and services used in the making of other goods and services is referred to as intermediate consumption. Raw materials, energy, and packaging are all examples of this. Advertising and public relations are both methods of promoting a company's products or services to customers. This can aid in raising brand recognition, generating leads and driving sales.
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