Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.
Answer: The three groups of industrial goods include: (1) Materials and parts are goods that enter the manufacturer's product completely. Raw materials (farm and natural products) and manufactured materials and parts (component materials and component parts) compose this group; (2) Capital items are long-lasting goods that facilitate developing or managing the finished product, such as machinery (installations and equipment); and (3) Supplies and business services are short-term goods and services that facilitate developing or managing the finished product; maintenance and repair and operating supplies are included here. Business supplies include advisory services and other "services" necessary for the ongoing operation of the business.