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"Machine purchased is considered as final good". How would you justify this statement?
Verified Answer
"Machine purchased is considered as final good". How would you justify...
No.It depends on the end- use of the machine.If it is purchased by a household it is outrightly a final good.It is like a consumer durable .
If it is purchased by a retail dealer from the factory for the pupose of resale,it is to be treated as intermediate good.
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Most Upvoted Answer
"Machine purchased is considered as final good". How would you justify...
Can not say as such because it may vary in different organisation or company.
Community Answer
"Machine purchased is considered as final good". How would you justify...
Final Goods Explanation:
Final goods refer to products that are consumed by the end user and are not used as inputs in the production of other goods. When a machine is purchased, it is considered a final good because it is meant to be used as a finished product by the buyer.
Justification of Machine Purchase as Final Good:
- No further processing: Machines are typically purchased for immediate use without any further processing required. They are ready to be used as intended by the buyer.
- End-user consumption: Machines are not meant to be used as inputs in the production of other goods. They are purchased by end users for their specific purposes.
- Single transaction: The purchase of a machine is a single transaction between the buyer and the seller, indicating that the machine is intended for final use.
- No resale for production: Unlike intermediate goods that are used in the production process and may be resold for further manufacturing, machines are not typically resold for production purposes.
Conclusion:
In conclusion, the purchase of a machine is considered a final good because it is intended for immediate use by the end user without any further processing needed. It is a single transaction for end-user consumption, distinguishing it from intermediate goods used in production processes.
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"Machine purchased is considered as final good". How would you justify this statement?
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"Machine purchased is considered as final good". How would you justify this statement? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about "Machine purchased is considered as final good". How would you justify this statement? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "Machine purchased is considered as final good". How would you justify this statement?.
"Machine purchased is considered as final good". How would you justify this statement? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about "Machine purchased is considered as final good". How would you justify this statement? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "Machine purchased is considered as final good". How would you justify this statement?.
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