One of the Main Differences Between the Calculation of Cost

question 174

Short Answer

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser, but the manufacturer replaces that with ________.

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Definitions:

Money

A means of exchange used to make payments for other goods and services as well as to measure their value.

Division of Labor

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Political Organization

Structures and systems governing the conduct of public affairs and the distribution of power within a society.

Valuable Goods

Items or resources that are considered of high value in economic, cultural, or personal terms.