Distinguish between service and merchandising operations.

Q: How do you calculate Cost of goods purchased

A: Cost of goods purchased (COGP) refers to the total cost incurred by a company to purchase inventory…

Q: Define the term sales mix.

A: The sales mix is a calculation that determines the proportion of each product a business sells…

Q: What are the Source documents used in a merchandising business?

A: Merchandising business is the one in which the entity deals in with goods / products.

Q: Discuss the difference in the operating cycle of merchandising and the service business

A: The operating cycle of merchandising and the service business will be explained :

Q: What does the Work-in-process inventory consist of?

A: Work-in-process inventory consist of materials which are partially completed in the production…

Q: Discuss the role of conversion cycle for service and retailing entities

A: Transaction Cycles: The similar transactions of an organization are grouped together to form a…

Q: Distinguish between manufacturing-, merchandising-, and service-sector companies?

A: Manufacturing companies are the  ones which procure raw materials and carry out manufacturing…

Q: Shipping of Costs for a Shipping Department

A: What is shipping and handling? Shipping and handling is the process of preparing and packing an…

Q: For each cost pool, identify an appropriate cost driver. a. order department b. accounts…

A: Cost Driver: The direct reason for a cost is referred to as a cost driver. Fixed expenses do not…

Q: Which of the following is not a product-level activity? A. Product design B. Engineering changes C.…

A: Product level activities are those things and activities which are usually done at product level.…

Q: Describe how manufacturing, merchandising and service-sector companies differ from one another?

A: Manufacturing Companies: Merchandiser is a person or organization who buys goods with the purpose of…

Q: What distinguishes a merchandising business from a service business?

A: Merchandising Company and Service Company: A merchandising company generates income by selling goods…

Q: Explain Operating Cycle of a Typical Merchandising or Manufacturing Company.

A: Operating cycle: The operating cycle is the period of time which is required to meet the initial…

Q: Inventory for a manufacturer consists of raw materials, work in process, and finished goods.…

A: Inventory: Inventory refers to the raw materials, work-in process, and the finished goods products…

Q: Describe the Cost flows and their classifications in a manufacturing company?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Which of the following would be a service department for a furniture manufacturer?     A. Assembly…

A: A manufacturing firm may have different segments or departments performing different functions. Some…

Q: Which of the following departments often found in a merchandising organization would be classified…

A: Line department is the department in the entity which provides the core services to the entity in…

Q: Briefly explain Cost Behavior and its importance in retail industry.

A: Cost behavior is an important concept in accounting. Proper use of common sense will assist managers…