How does a merchandising company calculate unit cost per item?
The merchandising company calculates the unit cost per item by calculating the total number of items sold from the total cost of goods sold.
A merchandising company is a company that sells the goods which are purchased from the suppliers.
The cost per item for merchandising company is computed by using the formula in which the total cost of goods sold is divided by the total number of items sold.
Match the term with the correct definition.
1. A philosophy designed to integrate all organizational areas in order to provide customers with superior products and services while meeting organizational objectives. Requires improving quality and eliminating defects and waste.
2. Use of the Internet for business functions such as sales and customer service. Enables companies to reach customers around the world.
3. Evaluating a company’s performance by its economic, social, and environmental impact.
4. Software system that integrates all of a company’s functions, departments, and data into a single system.
5. A system in which a company produces products just when they are needed to satisfy needs. Suppliers deliver materials when they are needed to begin production, and finished units are completed at the right time for delivery to customers.
a. ERP b. JIT c. E-commerce d. TQM e. Triple bottom line
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