identifying differences between service, merchandising, and manufacturing using the data above calculate operating income

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Differences between service, merchandising, and manufacturing companies
Manufacturing companies use raw materials, process them using direct labor to convert into finished goods.
Such companies have to maintain the records of inventory of raw material, work-in-progress & finished goods.

Merchandise companies do not manufacture product themselves, rather they purchase it from suppliers such as
retailers, stockist in order to resell them in the market. They do not change the form of a product siginificantly.
They maintain the record of finished goods inventory that they are dealing in.

As the name suggests, Services companies do not sell products, they provide for services. Such services may include
intangible products, accounting & legal services, technical knowledge etc.
They possess no inventory like other two companies mentioned above.

ekkarill92 answered 1 year ago

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