Which of the following is NOT a characteristic of intermediate good?

• These goods are purchased by the final consumer to fulfill his needs.
• When these goods are processed, they lose their existence as they are used up in the process of production.
• These goods are outside the production boundary.

1 and 3 

Intermediate goods are those goods which are purchased by one production unit from another production unit. These goods are then processed and they lose their existence as they are used up in the process of production. For example: Wheat, cotton etc. Intermediate goods remain within the production boundary.