Final Goods: Final goods refer to those goods which are used either for consumption or for investment.
Final Goods include:
It must be noted that final goods are neither resold nor used for any further transformation in the process of production.
Intermediate goods Raw materials, power, fuels etc. used by the producers for further production of final goods and services are also called intermediate goods. Example: Wheat flour is an intermediate good in the production of bread in the bakery.
Intermediate Goods include:
How to Classify Goods as: Intermediate Goods and Final Goods:
The distinction between intermediate goods and final goods is made on the basis of the use of product and not on the basis of product itself. A commodity can be an intermediate good as well as a final good, depending upon its nature of use.