Question

What is the difference between intermediate goods and final goods?

Answer 1

An intermediate good is a product used to produce a final good or finished product. These goods are soldbetween industries for resale or the production of other goods. One example of an intermediate good is salt, a product that is directly consumed but also used to manufacture food products

Answer 2

Intermediate Goods

• These goods remain within the boundary line of production and not ready for use by their final users.
• These goods may be used as raw material for the production of other goods during the accounting year.
• These goods maybe Resold by the forms for Profit during the accounting year.
• Value is yet to be added to these goods.

Final Goods

• These goods are outside the boundary line of production and ready for use by their final users.
• These goods are not used as raw material for the production of other goods during the accounting year.
• These goods are not resold by the firms for profit during the accounting year.
• Value is not to be added to these goods.