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As per my knowledge,
Basically, In investment we expect more output than input as time passes. for example, if you invest in land today, you expect more money from that land after some years. and generally it is for long term.
In expenditure you expect same output as per your input. for example When you go to Kirana shop and purchase 1 lit milk, it is an expenditure. because you are giving money and getting milk which you are going to consume without expectation of making more money from that in long term.
So, I think an Advertisement in right direction will always be investment for any company. Because if the benefit or value added to product is more than the spending for advertisement then it is an Investment. If no extra benefit or value addition to the product then it will become expenditure.
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∙ 10y ago
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What is the difference between investment and expenditure?
An investment you expect a return, with the other, you don't.
What is another word for expenditure?
outgo, expense, investment.
What does investment affect in the keynesian model?
Government expenditure.
What is national expenditure?
It is the total expenditure for all kinds within the economy that is public and private. The national expenditure =Consumption+Investment+government purchases.
Why is advertising considered an investment not an expenditure?
Though advertisement is shown in the profit and loss a/c and not on the balance sheet, it is an investment from the business point of view because it impacts the business for a long time. We must not forget about the consumer's brand loyalty -- once a consumer becomes brand loyal, he can remain loyal for a long time. But on the other hand, expenditures cannot attract consumers.A characteristic of investments is that they add something to the value of the product. But most expendituresare unwanted, and every firm wants to reduce them. Overall, since advertisement can help a business to increase product demand, it can be an investment, not merely an expenditure.
What is the difference between investment and expenditure?
An investment you expect a return, with the other, you don't.
What is another word for expenditure?
outgo, expense, investment.
What does investment affect in the keynesian model?
Government expenditure.
What is national expenditure?
It is the total expenditure for all kinds within the economy that is public and private. The national expenditure =Consumption+Investment+government purchases.
Why is advertising considered an investment not an expenditure?
Though advertisement is shown in the profit and loss a/c and not on the balance sheet, it is an investment from the business point of view because it impacts the business for a long time. We must not forget about the consumer's brand loyalty -- once a consumer becomes brand loyal, he can remain loyal for a long time. But on the other hand, expenditures cannot attract consumers.A characteristic of investments is that they add something to the value of the product. But most expendituresare unwanted, and every firm wants to reduce them. Overall, since advertisement can help a business to increase product demand, it can be an investment, not merely an expenditure.
All IT company names and email in hyderabad?
i want company name and advertisement expenditure
Is saving an injection into and investment a leakage from the income expenditure stream?
Savings are a leakage from the income expenditure stream because they drain on the economy
What is deferred capital expenditure?
the amount spent on advertisement and other similar expenditures benefit will be last long for some additional years will be called deferred capital expenditure.
What are the factor affecting aggregate Demand?
Consumption, Investment, Government Expenditure and Net Exports
On the aggregate expenditure graph if autonomous investment decreased by 10 billion what happens to the aggregate expenditure line and planned savings?
autonomous onvestment cant be decreased
Which is included in the expenditures approach to GDP?
Consumption + Gross Investment + Government Expenditure + (Exports - Imports)
Why a sudden decrease in desired consumption expenditure would lead to an sudden increase in actual investment?
It is as you are Gida.
