Manufacturing Companies:
Merchandiser is a person or organization who buys goods with the purpose of sale these goods to the customer. They buy goods either from the manufacturer or from a wholesaler. They sell goods at higher rate than its purchase price.
Merchandising Companies:
Merchandiser is a person or organization who buys goods with the purpose of sale these goods to the customer. They buy goods either from the manufacturer or from a wholesaler. They sell goods at higher rate than its purchase price.
Service-Sector Companies:
Service companies act as a service provider, who do not buy or sell goods. They deal with intangible things. Therefore, the accounts used by the Service Company differ.
To explain: The difference between manufacturing, merchandising and service-sector companies.
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Cost Accounting (15th Edition)
- Explain how the income statement of a manufacturing company differs from the income statement of a merchandising company.arrow_forwardWhat is the primary distinction between a service company and a manufacturing or merchandising company?arrow_forwardHow do manufacturing companies differ from merchandising companies?arrow_forward
- How does reporting information for a merchandising company differ from financial reporting for a service organization?arrow_forwardWhat distinguishes a merchandising business from a service business?arrow_forwardExplain how management accounting may differ for each of these types of businesses, service, merchandising, and manufacturing. Provide specific examples for each business type.arrow_forward
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