Identify and explain the key components of a merchandiser's net income.
What will be an ideal response?
The basic components of income begin with net sales. Cost of goods sold is subtracted from net sales to determine gross profit (also called gross margin). Operating expenses are then subtracted from gross margin to determine net income.
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In a balance-forward accounts receivable system, customer statements display previous balance, payments, and balance forward to which are added any new charges to derive the total balance due
Indicate whether the statement is true or false
When a copy of the receiving report arrives in the purchasing department, it is used to
a. adjust perpetual inventory records b. record the physical transfer of inventory from receiving to the warehouse c. analyze the receiving department's process d. recognize the purchase order as closed
GameTech International Inc engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India
TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and to closely observe TechToys' operations in India. What is the possible rationale behind this delaying decision?
The data used to calculate the order point include all of the following except:
a. the costs of placing an order. b. the rate at which the material will be used. c. the estimated time interval between the placement and receipt of an order. d. the estimated minimum level of inventory needed to protect against stockouts.