Expenditure on advertisement and public relations by an enterprise is a part of its

(A) consumption of fixed capital
(B) final consumption expenditure
(C) intermediate consumption
(D) fixed capital

Correct Answer : intermediate consumption
Question Asked : SSC (10+2) Level DEO & LDC Exam 2013
Explanation : Expenditure on advertisement and public relations by an enterprise is a part of its intermediate consumption. These are treated as intermediate goods and services which form part of the cost of producing other goods. Intermediate consumption consists of the total monetary value of goods and services consumed or used up as inputs in production by enterprises, including raw materials, services and various other operating expenses.
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Tags : Microeconomics
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