RE: Difference between Trading Goods and Finished Goods

[Former Member]

What is the difference between a trading good and a finished good?

My business contracts the manufacturing of surfboard to third party manufacturers. We then distribute the surfboards out as our product to customers. Would you describe our surfboards as a trading good or a finished good?

Thanks

[former_member204746]

this is a GOOD topic

[Former Member]

Trading goods can be anything from raw material, work-in-progress to finished goods. The definition of finished goods can also vary from one company to another as the finished good of one company can be a component for another manufacturer.

[Lakshmipathi]

First of all, I am not sure which is the right forum for this question

Coming to your query, a trading goods can be a finished goods or semi finished goods but not all finished goods can be treated as a trading goods. Hope you got the difference.

From manufacturers point of view, whatever they produce and sell, it can be treated as a finished goods. Whatever they procure and sell, that can be treated as a trading goods.

thanks

G. Lakshmipathi

[Former Member]

Hi,

My company is treating resale items as finish products, is there anything wrong if i advice them as to be treated as trading goods and run ck11n for cost estimate along with additive costs instead of using KKPAN

Thanks