1.

Distinguish between Intermediate product and final product , giving suitable examples in support of your answer.

Answer»

Solution :INTERMEDIATE PRODUCTS :Intermediate product are the RAW materials used in the production of FINISHED goods and services .These Goods are either used for resale.For e.g : Cotton bought by a textile mill for making cloth is an intermediate product.In making CAKE intermediate products used are cake flour, sugar, cocoa powder, butter.
FINAL PRODUCTS :Goods which are ready for consumption or capital FORMATION by the final users. These Goods are NEITHER used for resale.For e.g : cotton bought by consumer for their personal use is a final good.Oil , sugar ,salt bought by consumer for final consumption.


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