Accounting for merchandising businesses involves tracking the purchase and sale of goods, which typically includes inventory management, cost of goods sold (COGS), and revenue recognition. Merchandising businesses maintain an inventory account to record the cost of products purchased for resale. When items are sold, their cost is transferred to COGS, impacting the income statement. Additionally, proper accounting ensures accurate financial reporting and compliance with accounting standards.
1.)service 2.)merchandising,/ trading 3.)manufacturing
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.
Over-the-counter indicates to me that this is a type of Merchandising business. The accounting is really Merchandising Accounting. Accounts such as Revenue, Cost of Goods Sold, Inventory, all come into play. Merchandising company's also use such things as FIFO or LIFO inventory to keep track of the merchandise they are selling. Some examples of a Merchandising Company is Wal-Mart, Fry's Electronics, Grocery Stores, Clothing Stores, etc. These companies purchase "Inventory" at whole-sale prices, mark up the price to Retail, sales the merchandise and make profit off the difference. Whole-Sale price would be the COGS (cost of goods sold).
Sales
Sales
1.)service 2.)merchandising,/ trading 3.)manufacturing
example of merchandising business
example of merchandising business
merchandising
what are the some examples of merchandising business ?
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.
yes
Yes, Accounting would be a service function. A service is any business that provides a well "service".There are 2 main types of business, Merchandising, where a business sells a product, such as Wal-Mart, Target, a local resteraunt.Service, where the company is in business to provide a service, Accounting, Dry Cleaning, Landscaping.Since accounting would be the provision of an Accounting Service, then it would be a service business.
Over-the-counter indicates to me that this is a type of Merchandising business. The accounting is really Merchandising Accounting. Accounts such as Revenue, Cost of Goods Sold, Inventory, all come into play. Merchandising company's also use such things as FIFO or LIFO inventory to keep track of the merchandise they are selling. Some examples of a Merchandising Company is Wal-Mart, Fry's Electronics, Grocery Stores, Clothing Stores, etc. These companies purchase "Inventory" at whole-sale prices, mark up the price to Retail, sales the merchandise and make profit off the difference. Whole-Sale price would be the COGS (cost of goods sold).
accounting related to business
Sales
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