| FINAL GOODS | INTERMEDIATE GOODS |
| Final goods: Are those goods, which are used either for final consumption or for investment. It includes final consumer goods and final production goods. | Intermediate goods are those goods, which are used either for resale or for further production. |
The goods are not used to satisfy their needs by consumers or invested by producers.
E.g. bread &milk purchased/used by consumers Purchase of machinery by producer | The nondurable goods used as raw materials during an accounting year or capital goods bought for resale.
E.g. bread purchased for making bread pakoras at a restaurant |
| Resale of goods by firm for profit making in an accounting year is not possible. | Resale of goods by firm for profit making is possible in an accounting year. |
| Final goods are included in estimation of national income | Intermediate goods are not included in the estimation of national income. |
| Value addition not required in future. | Value addition required in future. |
