What is the difference between intermediate consumption and intermediate consumption expenditure? Explain with examples

Dear Student,

 

Intermediate consumption refers to the 'consumption' or complete use of goods as inputs in the process of production. These goods, once used, cannot be used again as inputs, eg. raw material. The expenditure on such goods is referred to as intermediate consumption expenditure. For example, the use of raw material in the process of production is intermediate consumption, but spending Rs. 4,000 to purchase the raw material is intermediate consumption expenditure.