Explain the basis of classifying goods into intermediate and final goo – InterviewSolution

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1.

Explain the basis of classifying goods into intermediate and final goods. Give suitable examples.

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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