Question

Explain the Merchandising Operations in detail and also mentioned the difference between Service Operations and Merchandising Operations?

Answer 1

Merchandising Operations = The term merchandising operation means various activities included in business process such as purchasing, selling receiving payments or making payments. They are ongoing operations used for the betterment of cash flows in the busienss. If the merchandising operations are executed efficiently, it helps in keeping sufficient stock to meet customers demand.

Difference between Service Operations and Merchandising Operations

Basis of Difference	Merchandising Operations	Service Operations
Income Statements	In the balance sheet, asset form the greater part in asset's category	In the balance sheet, accounts receivable form greater percentage as a part of total assets
Inventory Valuation	In merchandising operations, inventory valuation is manifested as products are involved.	In the income statement of service company, there is no line for cost of goods sold.