Concept introduction:
Service Companies: A company which make income or profit by providing service to its customer instead of selling goods. A example of service company is a chartered accountancy firms.
Merchandising Company: Generally there are two types of merchandising company i.e. Retail and wholesale Companies. A retail company is a company which sold goods directly to customers and a wholesale company is company which sold goods to retail companies.
Manufacturing Company: A company which uses parts or raw material to produce further finished goods and that finished goods sold to customers or other business units which uses them.
To identify:
Write Difference Between Service, Merchandising and Manufacturing Company?
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MANAGERIAL ACCOUNTING >C<
- Explain how the income statement of a manufacturing company differs from the income statement of a merchandising company.arrow_forwardWhat type of costing system do most service businesses use, and why do they use it?arrow_forwardWhich of the following is the primary source of revenue for a merchandising business? A. the production of products from raw materials B. the purchase and resale of finished products C. the provision of intangible goods and services D. the sale of raw materials to manufacturing firmsarrow_forward
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