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Merchandising Mathematics for Retailing 5th Edition by Cynthia Easterling ,Ellen Flottman,Marian Jernigan ,Beth Wuest
Edition 5ISBN: 978-0132724166Merchandising Mathematics for Retailing 5th Edition by Cynthia Easterling ,Ellen Flottman,Marian Jernigan ,Beth Wuest
Edition 5ISBN: 978-0132724166 Exercise 2
Merchandising includes all of the activities necessary to buy and sell merchandise at a profit. What are these activities?
Explanation
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The meaning of merchandising is selling of the goods to retail customer. The merchandisers are also known as retailer; purchase the goods from manufacturers and wholesalers. They add a margin or amount of gross profit, and sell the goods to customers at a greater price than what they actually paid.
Followings are the activities to buy and sell merchandise at a profit:
1. Firstly, goods are purchased as per the requirement and purchase account should be updated.
2. Inventory should be updated as perpetual inventory system.
3. The cost of overhead should be allocated on the final products of organization.
4. After knowing the whole cost of product, there is adding the margin of profit. After adding the margin of profit, selling price is determined.
5. Finally, there is selling of products to the final customers.
Followings are the activities to buy and sell merchandise at a profit:
1. Firstly, goods are purchased as per the requirement and purchase account should be updated.
2. Inventory should be updated as perpetual inventory system.
3. The cost of overhead should be allocated on the final products of organization.
4. After knowing the whole cost of product, there is adding the margin of profit. After adding the margin of profit, selling price is determined.
5. Finally, there is selling of products to the final customers.
Merchandising Mathematics for Retailing 5th Edition by Cynthia Easterling ,Ellen Flottman,Marian Jernigan ,Beth Wuest
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