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Exam Code: C_C4HFSM_91

Exam Name: SAP Certified Application Associate - SAP Field Service Management 19Q1

Certification Provider: SAP

Related Certification: SAP Certified Application Associate - SAP Field Service Management 19Q1

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NEW QUESTION: 1
A consumer purchases a new house for his own family to live in. The price is $600,000 and it will last for 60 years. Under the expenditure approach:
A. Personal consumption expenditures will be added for $10,000 ($600,000 / 60 years) since the house is expected to last for 60 years.
B. Gross private investment will be added for $600,000 since the house can be seen as an investment.
C. Personal consumption expenditures will be added for $600,000 since the house is a personal, not business goods.
Answer: B
Explanation:
Many goods possess both consumer- and investment-good characteristics. There is not always a clear distinction between the two. National accounting procedures have rather arbitrarily classified household purchases, except housing, as personal consumption. A house is an investment good because it will also provide a stream of services long into the future.


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