Distinguish Between Data and Information, and Give a Specific Business

question 54

Essay

Distinguish between data and information, and give a specific business example of each.

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Definitions:

Merchandise Inventory

Refers to products that a company holds in stock with the intention of selling them to customers. It is a current asset on the balance sheet.

Cost of Goods Sold

The direct costs attributable to the production or purchase of the goods sold by a company during a given period.

Supplies

Materials and items that are used in the day-to-day operations of a business but which do not form part of the final product.

Freight-in

Freight-in refers to the shipping cost associated with getting goods from the supplier to their location, which is part of the inventory cost.