MGMT 30A Chapter 5: Mgmt 30A CH5
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MGMT 30A Full Course Notes
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Chapter 5: merchandising operations and the multiple-step income statement. Merchandising = largest and most influential industries in the united states. Learn the basics about reporting merchandising transactions. In a merchandising company, the primary source of revenues is the sale of merchandise. Referred to as sales revenue or sales. Sales revenues (less) cost of goods sold = gross profit (less) operating expenses = net income (loss) Rei, wal-mart, and amazon = merchandising companies because they buy and sell merchandise rather than perform services as their primary source of revenue. Retailers = merchandising companies that purchase and sell directly to consumers. Wholesalers = merchandising companies that sell to retailers. Example = retailer walgreens might buy goods from wholesaler mckesson. Retailer office depot might buy office supplies from wholesaler united stationers. Primary source of revenue for merchandising companies is the sale of merchandises. Merchandising company has two categories of expenses. Cash perform services acc receivable.
