What is indirect production?

Indirect production is an economic term that refers to the process of producing something indirectly. This can be achieved using another item for the production of final goods, or it can be achieved by producing something to be used as a means to obtain another item. In both cases, the created item is used only as a means of producing or entering orders of the final item.

An example of indirect production can be seen in the production of the item explicitly for the purpose of producing other items. An indirect product is usually a machinery or equipment used to produce other objects. For example, a company that produces prefabricated houses can build patented equipment that serves as a form for the construction of a part of the exterior for prefabricated houses. In this case, the machinery is only the means used for the production of the final product and is therefore in an in -pineal production.

nEpired production is limited to machines or equipment, as it can also be applied to services. A specific product can serve as a form of indirect production if its final goal is to serve as a means of allowing the final production of the service. For example, this would apply to a telephone that was specially manufactured by a company for use representatives of customer services. In this case, the phone is only a means for the final product, which is a customer service.

Another example of indirect production can be seen in the case of manufacturing an item for replacement or sale. In such a situation, the item that is produced for sale is an indirect means to obtain other required items. Such a scenario can be seen in the case of a rice farmer who produces more than enough rice to meet his needs and sell other rice in the exchange for money that serves as a medium to obtain other necessary items. Where a farmer is successful in the sale of some of the rice, the money from this sales canLiving as a means to get other items such as clothing, shoes and fuel. In this case, rice production serves as a form of indirect production.