Explanation The merchandising companies are companies who buy goods and services from the manufacturer and sold to the retailer or end consumer. Therefore merchandiser has the cost of goods sold which is transportation & holding cost, inventory, and purchases. a. Direct materials budget: The merchandising companies have a number of budgets but the direct materials budget is not the unique budget. b. Operating expenses budget: Almost all the companies prepare operating expenses budget...

5th Edition

ISBN: 8220103613811

Author: TIETZ

Publisher: PEARSON

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Chapter 9 Solutions

EBK MANAGERIAL ACCOUNTING

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

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The Budget which is unique to merchandising companies.

Solution Summary: The author explains that the cost of goods sold, inventory, and purchases budget is unique to merchandising companies.

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