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

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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 incomeIntermediate goods are not included in the estimation of national income.
Value addition not required in future. Value addition required in future.

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