ACCTG 211 Chapter Notes - Chapter 2: Income Statement, Variable Cost, Toyota Electronic Modulated Suspension
Document Summary
Chapter 2 building blocks of managerial accounting. Triple bottom line: the company"s performance is evaluated not only in terms of profitability, but also in terms of its impact on people and the planet. Companies typically generate profit through one of the three basic business models: they provide a service, they sell merchandise, or they manufacture products. In business to sell intangible services such as health care, insurance, banking, and consulting rather than tangible products. Because these types of companies sell services, they generally don"t have inventory. Service companies incur costs to provide services, develop new services, advertise, and provide customer service. For many service providers, salaries and benefits make up over 70% of their costs. Sell tangible products they buy from suppliers. Retailers sell to consumers like you and me. Wholesalers, often referred to as middlemen, buy products in bulk from manufacturers, mark up the prices, and then sell those products to retailers.
