How do you handle variant items and kits in your instance?

Hello! My operations team and I are currently restructuring our approach to our product inventory and are interested in utilizing the newest Template and Matrix item capabilities. We are trying to determine the best way to set up the templates - using "finished good", "component", or "sub-assembly". We are unclear if those 3 "types" are standard to Acumatica or if they were created (people who helped setup the system are no longer part of the effort so we have some open questions). Today the we have a a SKU that comes from the manufacturer with several items. The items can be sold by themselves or as part of the "system". Our challenge/concern is if we make all the individual SKUs a component then what constitutes a finished good? Should we make each of the items a finished good and then the kit would consist of say 2 finished good items?