Looking for the difference between Intermediate consumption and final consumption as per class 12 CBSE Board, ISC, and other state board.
I have explained this topic in detail.
|Basis||Final consumption||Intermediate consumption|
|Meaning||Final consumption refers to the expenditure of those goods which are used either for consumption or for investment.||Intermediate consumption refers to the expenditure on those goods which are used either for resale or for further production in the same year.|
|Nature||Final consumption is included in domestic and national income||Intermediate consumption is neither included in domestic nor national income.|
|Value addition||expenditure is incurred on such goods which are ready for final consumption. No further value is added in such goods.||Such expenditure is incurred on those goods which are yet to be converted into final goods. further value addition is required to make them final goods.|
|Production Boundary||This expenditure is incurred on those that has crossed the production boundary.||Such expenditure is incurred on those that are still within the production boundary.|
|User||Final consumption is undertaken by both consumer and producer||Intermediate consumption is undertaken by only the producer|
|Examples||expenditure on milk, tv fridge by household, Machine purchased by producer||expenditure on milk purchased by sweets shop, expenditure on coal by factory|