Final answer:
The factor which determines whether or not goods should be included in a physical count of inventory is whether they are final goods or intermediate goods.
Step-by-step explanation:
The factor that determines whether or not goods should be included in a physical count of inventory is whether the goods are final goods and services that are sold for consumption, investment, government, and trade purposes. Government statisticians exclude intermediate goods, which are used in the production of other goods, from GDP calculations to avoid overstating the size of the economy.
This concept also applies to physical inventory counts in businesses. Inventories typically include goods that a business has produced but not yet sold to consumers, and these are sitting in warehouses or on shelves. The quantity in such inventories can fluctuate depending on whether business is exceeding or failing to meet expectations.