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      Question

      Read the following statements and answer the following

      question. (I) Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production. (II) Intermediate consumption excludes fixed assets whose consumption is recorded as consumption of fixed capital.
      A Only I is true Correct Answer Incorrect Answer
      B Both I and II are true Correct Answer Incorrect Answer
      C Only II is true Correct Answer Incorrect Answer
      D Neither I nor II is true Correct Answer Incorrect Answer

      Solution

      Intermediate consumption = value of inputs used up in production (true), but it does not include fixed assets (those are accounted as depreciation).

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