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.
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?
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.
do some research
Publix is a retail merchandiser.
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.
Cost of goods sold and Gross profit
merchandising
what are the some examples of merchandising business ?
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.
Sales is included in both sales and merchandising companies.
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