We will discuss the difference between merchandise concern and service concern business, but first, we need to know what is merchandise concern and service concern business.
The merchandise concern is that branch of business that deals with the purchase and selling of merchandise (products). Unlike service concern, the merchandise concern earns revenue by selling products to the customer.
Merchandise concern deals with the purchase and sale of products. Merchandising companies buy goods from the manufacturers for resale.
Example: Commercial importers and independent distributors in Bangladesh are merchandising concerns such as Agora one-stop mall, Lass Pharma, PQS and so on.
Service Concern: Service concern deals with the purchase and sale of service
Difference between Merchandise concern and service concern business
Business is of two types- one is service enterprise and another is merchandise enterprise. Though these are tow business concerns, they have some differences in the following cases:
|Business Pattern||It is a service-oriented business.||It is a product-oriented business|
|Basic Revenue||Service revenue is the basic revenue of service enterprise||Sales revenue is the basic revenue of merchandiser.|
|Journal||It uses only periodic Journal||It uses both periodic and perpetual journal.|
|Scope||It has a comparatively narrow scope of businesses.||It has a comparatively wide scope of businesses.|
|The cost of Goods Sold||It does not deal with the cost of goods sold||It deals with the cost of goods sold.|
|Limitation||It provides limited services within a limited area.||It has no limitation to sell merchandises.|
|Examples||Schools, colleges, universities, medical, clinic, repair workshop, chartered accountants firm, law concern, transportation concern etc.||Stores, stalls, shops, companies, incorporation|
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