Final answer:
Interest expense does not affect income from operations as it is a non-operating expense. Items such as the cost of hospital stays, child care from a licensed center, and new car sales are included in GDP calculations, while the rise in life expectancy, unpaid child care, resale of used cars, variety of cheese, and raw materials used for products are not included.
Step-by-step explanation:
The expense that does not affect the reporting of income from operations is (d) Interest expense. Income from operations is typically calculated by taking the net revenue and subtracting the cost of goods sold, selling expenses, and general and administrative expenses. Interest expense is considered a non-operating expense and is thus excluded from this calculation.
As for the included and not included items in Gross Domestic Product (GDP):
- (a) The cost of hospital stays - Included as it is part of healthcare services.
- (b) The rise in life expectancy over time - Not included as it is not a market transaction.
- (c) Child care provided by a licensed day care center - Included as it is a paid service.
- (d) Child care provided by a grandmother - Not included as it is unpaid labor.
- (e) A used car sale - Not included as it's a resale and does not represent production.
- (f) A new car sale - Included as it reflects current production.
- (g) The greater variety of cheese available in supermarkets - Not included as variety is not a direct measure of production or economic activity.
- (h) The iron that goes into the steel that goes into a refrigerator bought by a consumer - Included but only the final product (refrigerator) value is counted, to avoid double counting the inputs.