Multiple Choice
Which of the following is most commonly associated with a job order costing system?
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4. Merchandising Operations
Service Company vs. Merchandising Company
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Which of the following would be considered primarily a merchandising business?
A
A software development company creating custom applications
B
A landscaping company offering garden design services
C
A law firm providing legal advice
D
A bookstore that buys and sells textbooks
Verified step by step guidance1
Understand the definition of a merchandising business: A merchandising business is one that purchases goods and resells them to customers without significantly altering the goods.
Analyze the options provided in the problem: Each option represents a different type of business activity. For example, a software development company creates custom applications, which involves production rather than resale.
Evaluate the landscaping company: This business provides services (garden design) rather than selling physical goods, so it is not a merchandising business.
Consider the law firm: A law firm offers professional services (legal advice) and does not engage in buying and reselling goods, so it is not a merchandising business.
Identify the bookstore: A bookstore purchases textbooks and resells them to customers without altering the goods, which fits the definition of a merchandising business.
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