Semi-finished goods

Semi-finished goods (English: intermediate goods) or producer goods are goods used as inputs for the production of other goods. A company can make the next use of semi-finished goods, or make the next sell, or buy semi-finished goods. In the production process, semi-finished goods can become part of finished goods, or be changed until they are no longer recognizable.

What is a half-finished item?

Semi-finished goods are raw materials that have been processed and have gone through several stages of production. Even so, these semi-finished goods cannot be directly used to meet human needs because they are not yet ready-made products. Semi-finished goods have a low value and if processed further they will become quality goods and have high economic value.

Usually there are three options for using semi-finished goods. Companies can make and use their own intermediate goods. Companies can also produce goods and then sell them, which is a common thing for companies to do in industry. Companies can also buy semi-finished goods for special use in creating intermediate products or in producing finished goods.

Examples of Half-Finished Goods

One example of intermediate goods is yarn. At first the yarn came from cotton raw material, after the cotton was processed into yarn, the price was slightly inflated. The yarn that is further processed will become fabric and if the fabric is further processed, it can become an expensive quality fashion product, such as branded clothes. So, yarn and fabric can be categorized as semi-finished goods because they require further production processes to be more useful and useful.

 

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