What Is a Difference Between Merchandising Companies and Service Enterprises

question 85

Multiple Choice

What is a difference between merchandising companies and service enterprises?

• A)Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements.
• B)Merchandising companies generally have a longer operating cycle than service enterprises.
• C)Cost of goods sold is an expense for service enterprises but not for merchandising companies.
• D)All are these choices are differences.

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Definitions:

Dual Sourcing

A source strategy in which firms produce products in-house to ensure quality and availability while also purchasing the same products from suppliers in order to force competition and push innovation within the in-house unit.

Reshoring

The process of bringing manufacturing and production back to a company's original country from overseas to benefit from lower costs, better quality control, or tighter supply chain management.

Firm's Product

The goods or services produced and offered by a business to its customers.

Economic Climate

The overall state and conditions of an economy, affecting business confidence, consumer spending, and financial markets.