Flashcards in Chapter#2B: Types of Business Organizations Deck (9)
What is a Service Company?
is a business that offers services to the public
What Account does a service business not have?
Purchase account and no inventory is recorded
What is a Merchandising business?
purchases products from it's vendors for resale to its customers
What must a merchandising business prepare?
it will include a section called the cost of Good's sold
What is a Manufacturing Organization
they transform raw materials into finished goods for sale.
What are the three types of inventory
Raw material inventory
Work in process inventory
Finished goods inventory
What is Raw Material Inventory
includes the costs of various items used to produce the goods made by the organization
What is Work in Process Inventory?
includes all the costs of all products being made by a company that are not yet complete and ready to sell