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Which of these is included in cost of sales?

a. salary of sales staff
b. management salaries
c. overdraft interest
d. cost of raw materials

1 Answer

1 vote

Final answer:

The cost of hospital stays, child care provided by a licensed day care center, new car sales, and the greater variety of cheese available in supermarkets are included in GDP. The rise in life expectancy over time, child care provided by a grandmother, used car sales, and the iron that goes into the steel that goes into a refrigerator bought by a consumer are not included in GDP.

Step-by-step explanation:

cost of hospital stays: included in GDP as it represents the value of healthcare services provided

rise in life expectancy over time: not included in GDP as it is a measure of societal progress, not a tangible good or service

child care provided by a licensed day care center: included in GDP as it represents a paid service

child care provided by a grandmother: not included in GDP as it is an unpaid service

used car sale: not included in GDP as it is a second-hand transaction

new car sale: included in GDP as it represents a new good being produced and sold

greater variety of cheese available in supermarkets: included in GDP as it represents an expanded range of goods for consumers to purchase

iron that goes into the steel that goes into a refrigerator bought by a consumer: included in GDP as it represents a production input to a final good

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