1. Classification Of Industrial Product
Industrial products and services are classified into
three broad groups.
(1) Material and Parts ( These goods enter the
product directly)
• Raw Material ( Basic Products like iron ore, crude
oil, fruits, vegetables )
• Manufactured Items ( Acids ,fuel
oil, steel, chemicals)
• Components Parts ( semi finished parts like
bearings ,TV Tubes , small motors , tyres)
• Subassemblies ( semi finished goods like exhaust
pipe in motorcycle)

2. • Raw Materials- These are basic products that
enter the production process with little or no
alterations.
• Manufactured Materials and Component
Parts -- Manufactured materials include those
raw material that are subjected to some
amount of processing before entering the
manufacturing process.
• Component Parts – These parts can be
installed directly into products with little or no
additional changes

3. (2) Capital Items
A capital good is a durable good (is a good that
does not quickly wear out) that is used in
production of goods or services. These goods
are used in production process.
• Light equipment or accessories ( Hand tools,
computer terminals.)
• Installations or heavy equipment's ( machines
, turbines)
• Plant and building ( Offices ,plants,
warehouses, parking lots , housing, which are
real estate property)

4. • Light equipment or accessories- Those tools
which have lower purchase prices and are not
considered as part of heavy equipment's.
• Installations /Heavy equipment- These are major
and long term investment .These items are shown
in balance sheet as plant & equipment’s and
treated as fixed assets.
• Plant and buildings – These are the real estate
property of a company. It includes firm’s offices ,
plants (factories) , ware houses and so on.

5. (3) Supplies and Services
These goods /services support the operations
• Supplies – These are operating maintenance
supplies like fuels , packaging
materials, lubricants, paints, electrical items
• Services – Companies need a wide range of
services like Legal
,auditing, advertising, courier, marketing
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