What is intermediate consumption?

When we speak of intermediate consumption we refer to the value that is equivalent to the goods and services that have been used to create new products. The value given to it is really the use of said inputs in its production process.

In intermediate consumption we can consider non-durable goods and services consumed in the production of new goods and services. However, some assets, such as fixed assets (machinery or facilities) will be excluded from the classification. Similarly, aspects such as the maintenance costs of capital goods or those of product design and development must also be taken into account.

As is normal, to be able to manufacture most of the products we will have to use other products that have been previously produced. For example, to be able to make a glass bottle, we will have to use glass and paper to print your label. It assumes that both glass and paper are intermediate consumptions for the manufacture of the bottle.

Depending on the manipulation of the inputs, intermediate consumption may be incorporated in the production process of a certain good or service in one way or another. On some occasions, these goods can be included directly (usually they are materials necessary to complement the product, such as screws, nuts, etc.), being molded or processed (the product undergoes a transformation before being incorporated) or when it is consumed in a complete (which means that it does not undergo any transformation and it is the same product that is consumed).

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