1 Flashcards
What is merchandise?
Merchandise refers to products, also called goods, that a company buys to resell.
What is a merchandiser?
A merchandiser earns revenue by buying and selling merchandise; merchandisers are wholesalers or retailers.
What is a wholesaler?
A wholesaler buys products from manufacturers and sells them to retailers.
What is a retailer?
A retailer buys products from manufacturers and sells them to consumers.
What is inventory?
Inventory consists of products that a company owns and intends to resell.
What is revenue from selling merchandise called?
Revenue from selling merchandise is called sales.
What is the expense of buying and preparing merchandise called?
The expense of buying and preparing merchandise is called cost of goods sold (COGS).
How is net income for a merchandiser calculated?
Net income for a merchandiser is calculated as Sales - COGS - other expenses.
What is gross profit?
Gross profit is calculated as Sales - COGS.
