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Basis for Comparison Intermediate Goods Final Goods

1. Meaning Goods that is undergo the Goods that ready for sale or
production process. ready to consumed by ultimate
consumer to satisfy their needs
and wants.
2. Nature Unfinished or partly finish goods. Finished goods.
3. Usage Use by the firms to resell them, Use for final consumption or
to generate profit. capital..
4. Further Processing Undergo processing Do not require further
processing.
5. Inclusion of value in the Ready to be bought and sold.
national income
6. Derived Demand- Derived Demand Direct Demand
demand that comes for
something else. Demand
for a factor used for
another goods
Direct Demands-
demand for a final goods
7. Interdependence Are used as raw materials so as Are used as intermediate goods.
to create final goods.

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