RSM220H1 Study Guide - Purch Group, Cash Register, Operating Expense

• School: UTSG
• Department: Rotman Commerce
• Course: RSM220H1
• Professor: Stojanovic Dragan

Document Summary

The three (3) main types of industries are: Service which we have been looking at so far. Merchandizing which we will do in this chapter. They sell products either to wholesalers or retailers. In order to know the value of merchandize available for resale at any one time we need to look at the schedule, which outlines cogs as on page 280 - 281. The opening or beginning inventory, which holds the inventory value at the start of the accounting period. The ending or closing inventory, which holds the value at the end of the accounting period. We can use the perpetual or periodic inventory system to determine the value of the stock or inventory. This system does not record the sale of individual items as they are sold and so that method is used for small items e. g. candy or variety stores sales.