Merchandise

Merchandise is referred to as goods that a company acquires for the purpose of reselling them to customers. A merchandising company has different business operations than that of a servicing company. A merchandising company earns net income by buying and selling merchandise. A good example is Costco that buys groceries, electronics and clothes from manufacturers and resells it to customers for a margin (profit). Merchandise is referred to as goods that a company acquires for the purpose of reselling them to customers. The cost of this merchandise is called Cost of goods sold and is a direct expense item on the Income statement. Merchandising companies can either be wholesalers like Costco or retailers like Rogers Video.

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