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Is the measure of net income for a merchandising company conceptually the same for a service company?
Wiki User
∙ 13y ago
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
Vivien Cassin
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Typical example of service business and merchandising business?
what are the some examples of merchandising business ?
What is the difference between service and merchandise retailer?
Various costs are incurred by both merchandising and service businesses. Both may hire employees, both may need equipment in order to be in business and both types of business structures have customers who pay for goods or services. The main difference between a merchandising company and a service industry company is that the merchandising company must stock inventory.MerchandiseA merchandise business sells merchandise. Good examples of merchandising businesses include retail clothing, grocery stores and bookstores. Many people use the term "widget" to refer to any merchandise a business offers for sale when discussing business issues and dynamics. For example, a sale in which a customer receives two widgets for the price of one may refer to any type of merchandise. It could mean two pairs of shoes for the price of one or two boxes of pasta for the price of one. Service IndustryA service business sells things that are not tangible. A service company does not stock inventory, but it may need to stock tools and supplies. For example, a gardener comes to mow the lawn for a fee. He is selling a service. He may need to supply his own lawnmower, which is a cost of doing business. A maid sells the service of cleaning houses, but she may or may not need to bring her own cleaning supplies. After selling a service, there is no widget to pack up.
What is the marketing practice in which the brand or image from one product is used to sell another?
Merchandising refers to the marketing practice in which a product or a service brand or image is used to market or sell another product or service. Merchandising is also an income generating practice especially for intellectual property product owners.
Where can one find more information about retail merchandising?
One can find more information about retail merchandising from the following sources: Retail Merchandiser, Wikipedia, Prospects, Wise Geek, Retail Industry, SAS Retail, NARMS, Oracle, National Careers Service.
What is merchandising service?
The simple answer is: the installation and setup just about everything you can see and feel in a retail store while shopping. Every display, sign, fixture, shelf, kiosk, cabinet, checkout and fitting room needs to be installed in a retail environment. Typically it is done by a merchandising services company. We are hired to execute retail merchandising programs that are designed by and for retailers and consumer package goods manufactures. For example, when a national cell phone retailer launches a new model of phone, they need a company with nationwide reach to install a new display for their latest phones and hang new sales posters and graphics to the walls and windows. Teams of merchandising representatives are sent to each store on a predetermined schedule to perform the work. They are usually in a store for only a few hours but the new merchandising materials are ready for shoppers when they leave. Another example would be a store remodel. Most large retailers remain in the same location for many years. Periodically, they will give the store a visual merchandising facelift to freshen up the store environment. Store designers and visual merchandisers team up to create an extensive plan to remodel the store. A merchandising services company will come into the store for an extended period of time and remove old fixtures and displays. They will then install all new fixtures and shelving, install new displays and perform a "product set" throughout the store. A product set is the actual placement on the shelf or display according to specific diagram, commonly called a planogram. Once completely executed, the new store will match the design. These are just a few of the capabilities an experienced merchandising services company can provide.
Is the measurement of net income for a merchandising company conceptually the same as for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
Why is the normal operating cycle for a merchandising company likely to be longer than for a service company?
Why is the normal operating cycle for a merchandising company likely to be longer than for a service company?
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.
Merchandising and service company have gross profit?
do some research
Is Publix supermarkets a merchandising company service company or manufacturing company?
Publix is a retail merchandiser.
1 In comparing the accounts of a merchandising company with those of a service company what additional accounts would the merchandising company likely use assuming it employs a perpetual inventory?
Cost of goods sold and Gross profit
Is The Gap a service business - merchandising business group - or manufacturing business?
merchandising
Typical example of service business and merchandising business?
what are the some examples of merchandising business ?
How does income measurement differ between a merchandising company?
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.
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.
Which account will be included in both service and merchandising companies closing entries?
Sales is included in both sales and merchandising companies.
What does a direct merchandiser do?
Is some one that sets up displays as well as rotate products, stock products etc... Major brands will outsource there merchandising efforts to a company, kind like a staffing service. To go to retailers stores and set up the brands displays. I work for direct merchandising company that set up displays and check on price points for a cigarette company. A
