A Merchandising Company That Sells Directly to Consumers Is a

question 88

Multiple Choice

A merchandising company that sells directly to consumers is a

• A) retailer.
• B) wholesaler.
• C) broker.
• D) service company.

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Definitions:

Perpetual Inventory System

An inventory management system where updates to inventory records are made immediately following each transaction, giving a continuous, real-time account of stock levels.

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory is determined by averaging the cost of all similar items available.

Periodic System

A method of inventory tracking where updates are made on a periodic basis rather than continuously, typically at the end of an accounting period.

Cost of Goods Sold

Direct expenses involved in producing the goods that a company sells, including costs of materials and labor.