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How does income measurement differ between a merchandising company?
Wiki User
∙ 12y ago
As you can see, in merchandising companies we have more special components of revenues and expenses than service companies. Besides, merchandising have two different systems periodic inventory system and perpetual inventory system. Each system has own way to count goods.
Wiki User
∙ 12y ago
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How do components of revenue and expenses differ between a merchandising company and a service enterprise?
Merchandising Companies purchase and sell directly and is ordinarily longer than a service company because of the inventory and its eventual sale lengthen the cycle, which differ merchandising and service companies.
The steps for the accounting cycle for a merchandising company differ from the steps in the accounting cycle for a service enterprise?
Some of the steps may change. A merchandising company sells products, therefore the will have to consider the cost of goods sold, etc to find their net profit. A service company provides a service, therefore they won't have a cost of goods sold account, but instead figure supply expense. For the most part the steps will be either the same or very similar, however, accounts used will change.
How does merchandising businesses differ from service businesses when it comes to accounting?
A merchandising business sells products to customers, whereas a service business provides or sells services to customers. For example: A beauty salon is considered a service business because you are providing a service to the customers. in the case of a beauty salon, the service could be cutting hair, doing someones eyebrows, etc. A sports store such as Sports Mart is considered a merchandising business because you are selling products to customers. in this case the products could be shoes, hockey sticks, etc. Merchandising business has inventory.
Accounts Payable related all information how to do the accounts payable?
Basically there are various methods of accounts payables and differ from company to company. most of the petty cash expenses are paid in cash and other payament is made through cheques.
Is A differential cost a variable cost?
No they are not the same things. Differential costs are ones that differ between different alternatives. Differential costs are used interchangeably with the terms avoidable, incremental, and relevant costs. However, variable costs are simply ones that vary with different activity levels. They do not necessarily differ between alternatives.
How do components of revenue and expenses differ between a merchandising company and a service enterprise?
Merchandising Companies purchase and sell directly and is ordinarily longer than a service company because of the inventory and its eventual sale lengthen the cycle, which differ merchandising and service companies.
How do the graduations differ between ocular and stage micrometers?
By knowing the measurement of, and you use it to calibrate the ocluar lens of a microscope
The steps for the accounting cycle for a merchandising company differ from the steps in the accounting cycle for a service enterprise?
Some of the steps may change. A merchandising company sells products, therefore the will have to consider the cost of goods sold, etc to find their net profit. A service company provides a service, therefore they won't have a cost of goods sold account, but instead figure supply expense. For the most part the steps will be either the same or very similar, however, accounts used will change.
How does a parameter and a statistic differ?
A parameter is a numerical measurement of a population; a statistic is a numerical measurement of a sample.
Would a traditional income statement differ depending on whether the business is a service organization merchandiser or manufacturer?
A traditional income statement would differ depending on whether a business was service-oriented, a merchandiser, or a manufacturer. The manufacturing company transforms raw material into finished goods through the use of labor and factory facilities and a merchandising company, such as a retail furniture store which buys finished furniture and sells it in the same form i.e sells the goods it buys without changing the basic form. The income statement which is prepared by a merchandising concern needs no calculations of cost of goods manufactured. But the income statements prepared by the manufacturing concern requires the calculations for the cost of goods manufactured. So the financial statements prepared by a manufacturing company are more complex than the statements prepared by a merchandising company. The manufacturer company involves many costs that the merchandisers do not have. It is clear that the manufacturing company will have a more complex and varied cost components vs. a merchandiser and a service organization.
What is difference between a merchandising company income statement and manufacturing company income statement?
Merchandising companies do not calculate the raw materials placed in production or cost of goods manufactured. Merchandisers purchase goods from suppliers instead of manufacturing goods. The cost of these purchases from suppliers is often called net purchases in the income statement, in contrast to cost of goods manufactured in a manufacturer’s income statement. The net purchases line consists of purchases, purchases returns and allowances, purchases discounts, and freight in. Merchandisers do not use the schedule of cost of goods manufactured (and related schedule of raw materials placed in production). Merchandisers use an account called merchandise inventory, or simply inventory, instead of finished goods inventory. This reflects that merchandisers do not produce goods.
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How does fashion merchandising differ from fashion marketing?
Fashion marketing is about getting the consumer excited about a product. Planting a fantasy in their minds that make you want to purchase a product. Fashion merchandising is about setting up stores in a way that is appealing to the shoppers coming in. These two jobs often overlap.
How does the last digit differ from the other digits in a measurement?
Read the numerical value of the marked line. Finally you estimate between the smallest marked lines. The estimated value is the final digit in a measures number.
How does a measurement differ from a number?
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