1) Trading or Merchandising - buying of goods and selling the same without change in form
a. Wholesaling - goods are sold in big quantities or in volume.
b. Retailing - when goods are sold in small quantities. It is the selling of goods and services directly to the final consumers or users.
Kinds of Retailer
1. Department Stores - carry a wide variety of product lines.
2. Supermarkets - sell a variety of food and houselhold products.
3. Specialty Stores - carry a variety of models for one kind or limited product lines.
4. Convenience Stores - carry high turnover goods, twenty-four hours a day and seven days a week.
5. Superstores - larger than supermarkets and department stores have emerged.
6. Factory Outlets - different manufacturers are grouped together in one factory outlet mall. Usually located in places far from cities.
7. Direct Selling - is one-on-one selling.
2) Manufacturing - the process of converting raw materials into finished products.
A. Labor Intensive - processing is done manually by the workers.
B. Capital Intensive - processing is done through the use of machinery.
*Manufacturing Cost or Production Cost - is the sum of the costs of direct materials, direct labor and factory overhead.
Elements of Manufactuting Costs
1. Direct Materials - pertain to all materials that form parts of the finished product.
2. Direct Labor - is labor used in manufacturing a product which can be charged directly to the particular product.
3. Factory Overhead - refers to indirect elements of cost incurred to produce a finished product.
3) Service - is doing work for others.
**
Credits to Solita Frias! This is an easy topic, right? See you on the next lesson! Happy learning!!