How the operating cycle for a merchandiser is different

Reference no: EM132448529

Discussion - Merchandising This assessment addresses the following course objective(s):

Record various business transactions in accordance with generally accepted accounting principles. Instructions: Answer one of the following questions:

Question 1: Explain how the operating cycle for a merchandiser is different from a manufacturer. Explain the difference between perpetual and periodic inventory systems.

Question 2: What types of businesses would use each system and what are the advantages and disadvantage of each. Companies sometimes offer their customers a discount on their purchase if they pay early.

Question 3: What is the benefit for the company to take a reduced amount on these purchases and from the customer's point of view is it beneficial for them to take the discount.

Question 4: What factors does the customer have to consider when deciding to take the discount?

Reference no: EM132448529

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