Give reason and identify whether the following are final expenditures or intermediate expenditures.
(i) Expenditure on maintenance of an office building.
(ii) Expenditure on improvement of machine in a factory.
(i) Expenditure on maintenance of an office building is intermediate expenditure.
Reason Expenditure on maintenance of an office building will be considered as a raw material, so it should be considered as intermediate expenditure.
(ii) Expenditure on improvement of machine in a factory is final expenditure.
Reason Expenditure on improvement of machine in a factory is a kind of capital investment, so it should be considered as final expenditure.