Joshua (TLE)

Provides a service. Ex. Doctors, Engineers, Architects

Biggest expense = salaries

No inventory and No Cost of Goods Sold

Purchases and resells goods or products. Ex. Target, Bookstore

Uses equipment and facilities to convert raw materials and labor into finished goods or products.

Retailer is the one who purchases goods from a merchandiser or manufacturer and sells them to the customers.

• True

• False

It is the quantity of goods sold times the inventory cost of those goods.

• Manufacturing overhead

• Cost of Goods sold

• Product costs

• Work in process inventory

Indirect costs has no total effect on the total costs as it doesn't change.

• True

• False

Sales Revenue - Cost of Goods Sold - Expenses is the formula of what?

• Operating income

• Costs of goods sold

• cost of goods available

• unit product cost

What is the accounting equation?

Business is an organization in which basic resources such as materials and labor, are assembled and processed to provide goods and services to customers.

• True

• False

What are the three types of business?