Evaluate the operation and viability of a merchandising business from an accounting perspective.

Indicators for this outcome
(a) Investigate the difference between a service business and a merchandising business.
(b) Analyze local, provincial, national and international examples of merchandising (buying and selling) between producer, manufacturer, wholesaler, retailer and consumer.
(c) Evaluate business decisions related to import/export costs, product sustainability, local vs international merchandise and the impact those decisions have on the financial profits/loss of a business.
(d) Identify examples of merchandising businesses within the community and examine the viability of the business.
(e) Interview an owner of a merchandising business in the community to discuss operational information.
(f) Explain the difference between the acquisition price and the selling price of a product.
(g) Discuss the meaning of markup, margin and markdown.
(h) Explain purchases and their related accounts as being the main record of costs of the merchandise for resale in a periodic inventory system.
(i) Design a proposal for a home-based or online merchandising business, including components such as cost price, profit, overhead, selling price, salaries, delivery, advertising, income tax benefits, primary or secondary source revenue, supplier and markdown.
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