ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Today it is one of the most important inputs for many economic activities, including water, energy and food production. Water is used extensively not only in hydroelectric production but also in the production processes of new energy sources like fossil fuels or shale gas.

Detailed explanation-2: -Utility services include telecommunications, electrical utilities, natural gas, certain transportation services, and also water and wastewater treatment services provided by private companies.

Detailed explanation-3: -Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage. The expenses are incurred over the course of the reporting period, calculated, and accrued for, or payment is rendered.

Detailed explanation-4: -The amount of Utilities Expense for the sales function is classified as a selling expense and the amount used for administration is classified as an administrative expense. Utilities used in the manufacturing process will be part of the cost of the products manufactured.