The companies in the industry that purchase the finished goods, and further sell the products into the market are classified as ______________?
Correct answer: A. merchandising sector companies
- A. merchandising sector companies
- B. raw material companies
- C. manufacturing sector companies
- D. service sector companies
Explanation
Merchandising companies purchase finished goods and resell them in the market without substantially changing them. Manufacturing companies produce the goods, while service companies sell intangible services.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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