Talking about merchandisers today.A Merchandiser is a company which buys goods in order to resell them a a profit.
Merchandise inventory is a major asset for merchandisers. It’s all the goods which have been purchased but not yet sold.
Merchandisers have more complex income statements than service companies, because they have to account for costs of goods sold and operating expenses seperately, not as combined expenses.
Merchandisers will track their inventories via either a periodic inventory or a perpetual inventory system. A periodic inventory indicates that inventory is tracked by having someone count it at set time intervals. Before computerization of inventory systems became widespread, this was often the most practical inventory system, particularly for merchandisers who deal with large sales volume. A perpetual inventory system is one in which continuous records are kept of item quantities as they are bought and sold. Perpetual inventory systems have become much more practical as computerized inventory system and related technologies, such as bar codes, have been adopted.
Terms of Sale is a category of items which modify the prices of items sold. This includes trade or bulk discounts, sales discounts, and shipping costs. Shipping costs are often referred to as FOB