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Categories >> Accounting >> Accounting AllOther


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What is Total Expenditure?
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
# 1
total expenditure = net profit - gross profit 
Is This Answer Correct ?    17 Yes 7 No
# 2
Consider now a few total expenditure calculations. Total expenditure is calculated as price times quantity.
For example, if the price is 18 cents per minute and the corresponding quantity demanded is 1 million minutes, then total expenditure on Digital Distance telephone services is $180,000 (= $0.18 x 1,000,000).

Alternatively,if the price is 10 cents per minute and the corresponding quantity demanded is 5 million minutes, then total expenditure is $500,000 (= $0.10 x 5,000,000).

Or, if the price is 2 cents per minute and the corresponding quantity demanded is 9 million minutes, then total expenditure on Digital Distance telephone services is also $180,000 (= $0.02 x 9,000,000).
Note that as the price declines from 18 cents to 10 cents, total expenditure increases from $180,000 to $500,000. However, as the price declines further from 10 cents to 2 cents, total expenditure decreases from $500,000 to $180,000. This pattern of increasing then decreasing total expenditure is related to the changing price elasticity of demand on the demand curve.
Is This Answer Correct ?    8 Yes 1 No
# 3
Tot. Exp = Sales+ other income - Net Profit 
Is This Answer Correct ?    10 Yes 4 No
# 4
total expenditure includes creditors, Tax, Admin exp. etc. 
Is This Answer Correct ?    1 Yes 9 No
# 5
Total Expenditure is a term used in the Charities Act 1993
in relation to thresholds for scrutiny of non-company
charity accounts, preparation of annual reports and
submission of annual reports and accounts to the
Is This Answer Correct ?    6 Yes 17 No

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