A top-down method is employed when senior executives decide how much money should be set aside for each department's advertising expenses.
Consumption by families, corporate investment, government spending on goods and services, and net exports—which are equal to exports minus imports of goods and services—are the four primary aggregate expenditures that go into calculating GDP.
The entire cost to purchase a good or service is referred to as an expense. A $30 million piece of equipment with a six-year useful life that a business purchases is an example of a capital investment. The amount that is reported to reduce a company's revenue or income is referred to as an expense.
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