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How does merchandising businesses differ from service businesses when it comes to accounting?

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Wiki User
2010-04-21 04:18:27

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.

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