What is intermediate consumption deftion
Dear student,
Intermediate consumption means the value of goods or services used during the making of a final product.In other words intermediate consumption is the amount of goods or services consummated during production process. For example , let us suppose an economy where only 1 packet of bread along with 1 kg of wheat and 1 kg of sugar is produced in a year. So while computing the national income we must assess the value of bread packet and other goods produced during the year. So here the national income will include value of bread packet+ value of 1 kg of wheat+ value of 1 kg of sugar. Here the value of bread packet will also include the value of wheat and sugar since both wheat and sugar is used to produce bread. Here the value of wheat and sugar is the value of intermediate consumption.
Regards
Intermediate consumption means the value of goods or services used during the making of a final product.In other words intermediate consumption is the amount of goods or services consummated during production process. For example , let us suppose an economy where only 1 packet of bread along with 1 kg of wheat and 1 kg of sugar is produced in a year. So while computing the national income we must assess the value of bread packet and other goods produced during the year. So here the national income will include value of bread packet+ value of 1 kg of wheat+ value of 1 kg of sugar. Here the value of bread packet will also include the value of wheat and sugar since both wheat and sugar is used to produce bread. Here the value of wheat and sugar is the value of intermediate consumption.
Regards