Distinguish between Intermediate and Final goods. Give two examples of – InterviewSolution

1.

Distinguish between Intermediate and Final goods. Give two examples of each.

Answer»

Intermediate Goods	Final Goods
(i) These goods to be used as raw material for the production of other goods during the accounting year	There goods not to be used as raw material for the production of other goods during the accounting year
(ii) These goods to be used for resale by the firms to make profits during the accounting year	These goods not to be used Ior resale by the firms to make profits during the accounting year.
(iii)Value is yet to be added to these goods.	Value is not to be added to these goods
Eg. - Raw material	Eg. - Machine purchased for ihe installation in the factory.

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