ACC 100 Lecture Notes - Lecture 5: Gross Margin, Profit Margin, Net Income

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Maurizio Di Maio

Document Summary

Merchandising businesses: merchandising companies - costco, shoppers ,canadian tire buy and sell inventory, entries to record these transaction take into account changes in inventory, key- merchandising companies are both the buyer and the seller in inventory. Categories: restaurants- red lobster, retail- dynamite, health and beauty- sephora. Accounting firms or banks or fedex- all provide some form of service: main source of revenue- providing services. Important bc it measures how fast the company is growing- indicator of how healthy a country is: driven by person consumption - main component is retail sales. Wholesaler- buys large quantities from manufacturers, warehouses them, then sells to retailers. Accounting chapter 5 notes: costs that are incurred to purchase inventory, cost of inventory and cost"s like shipping inventory. Period cost: costs that a business incurs normally that are not product costs. Expense that allows business to run: rent for location, advertising costs, salary of sales people.