Scribd Logo
Upload

Welcome to Scribd!

  • Vanessa Paraldo

    Uploaded by

    Alindao, Jhames Petter
    18 views9 pages
    Manufacturing firms have more complex operations than merchandising firms due to the larger variety of costs they must control. They acquire raw materials that they transform into finished goods through direct materials, direct labor, and manufacturing overhead costs. In contrast to merchandising firms that purchase finished goods, manufacturing firms must account for the costs associated with transforming raw materials into finished products through their production process.

    Original Description:

    Original Title

    vanessa paraldo.pptx

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Manufacturing firms have more complex operations than merchandising firms due to the larger variety of costs they must control. They acquire raw materials that they transform into finished goods through direct materials, direct labor, and manufacturing overhead costs. In contrast to merchandising firms that purchase finished goods, manufacturing firms must account for the costs associated with transforming raw materials into finished products through their production process.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    18 views9 pages

    Vanessa Paraldo

    Uploaded by

    Alindao, Jhames Petter
    Manufacturing firms have more complex operations than merchandising firms due to the larger variety of costs they must control. They acquire raw materials that they transform into finished goods through direct materials, direct labor, and manufacturing overhead costs. In contrast to merchandising firms that purchase finished goods, manufacturing firms must account for the costs associated with transforming raw materials into finished products through their production process.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    Manufacturing

    Firms

    Vanessa Paraldo
    Manufacturing
    More complex organizations than merchandising
    firms and therefore have a larger variety of costs to Firms
    control.

    For Example:

    A merchandising firm may purchase furniture to sell


    to consumers, whereas a manufacturing firm must
    acquire raw materials such as lumber, paint,
    hardware, glue, and varnish that they transform into
    furniture
    Manufacturing
    Firms

    Sales

    -Cost of Goods Sold


    =Gross Profit
    -Operating Expenses
    =Operating Profit
    Three Terms of Manufacturing
    • Direct
    Materials
    • Direct Labor

    • Manufacturing
    overhead
    SERVICE
    ORGANIZATION
    Business that earns
    revenue by providing
    intangible products,
    those that have no
    physical substance
    THANK YOU!

    You might also like