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.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
NEW MyLab Accounting with Pearson eText -- Access Card -- for Cost Accounting
- Explain how the income statement of a manufacturing company differs from the income statement of a merchandising company.arrow_forwardThere are individuals who are under the impression that managerial accounting provides services mainly for manufacturing organizations. Are they correct? Explain.arrow_forwardWhat type of costing system do most service businesses use, and why do they use it?arrow_forward
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning