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no....i think the change in inventory is included but not accumulation..

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13y ago

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Why is it that any accumulation of inventories by firms is not included when measuring GDP?

It does not included because it might be a recounting and because accumulation of inventories by firms might be seen as private investment.


What kind of firm hold inventories of raw materials components and parts work-in-process and finished goods?

Manufacturing firms typically hold inventories of raw materials, components, work-in-process, and finished goods. Retailers and wholesalers also hold inventories of finished goods for sale to customers.


What happens when aggregate planned expenditure exceeds real GDP?

If aggregate planned expenditure exceed real GDP, firms sell more than they planned to sell and end up with inventories being too low. vice versa if aggregate planned expenditure is less than real GDP, firms sell lessthan they planned to sell and end up with unplanned inventories.


What difference between trading and service firm?

Trading firms are businesses that buy goods which will be resold to its buyers. Trading firms usually have inventories of goods to be resold. Service firms do not have these inventories. Service firms derive their revenue from services which they provide to customers. For example, the revenue of accounting firms relate to fees from conducting audits in organizations. For income statement of service firms, revenue from these services is reported as fees earned (or service revenue). Net operating revenue for service firms is the difference between the fees earned and the operating expense involved in offering the services. If you are interested in trading or you need trading services I suggest you to look at 5markets.com It offers trading services in currencies, commodities and indices, highly competitive trading conditions and superior customer support.


Which firms provide human resources recruiting?

There are many different firms that provide human resources recruiting. Included in these firms is Randstad USA, Hanold Associates, and The Christopher Group.


What is the difference between appropriated and unappropriated retained earnings?

Net earning of the firms, included retained earning, dividend etc.


What are the big ten audit firms?

The "Big Ten" audit firms typically refer to the largest accounting firms that provide audit, tax, and consulting services, though the term is often more commonly associated with the "Big Four." The Big Four firms are Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG. Other significant firms that may be included in a broader "Big Ten" context are BDO, Grant Thornton, RSM, Baker Tilly, Crowe, and Moore Global. These firms are recognized for their global reach and extensive service offerings in the accounting and auditing sectors.


How many firms are traded on the FTSE?

There are approximately 1700 firms traded on the FTSE. The number of firms traded changes daily. New firms are added as some firms drop off the exchange.


Are profitable firms necessarily efficient firms?

yes


Why big accounting firms carry out superior audits than medium and small accounting firms?

accounting firms carry out superior audits than small accounting firms


Why big accounting firms carry out superior audits than small and medium accounting firms?

accounting firms carry out superior audits than small accounting firms


The income statement is the major device for measuring the profitability of a firm over a period of time?

The income statement is in fact the major device used for measuring the profitability of a firm over time. Unlike the balance sheet that just shows the firms net worth an income statement shows both the revenue and expenses over a time period.