{"id":194554,"date":"2025-02-24T09:06:53","date_gmt":"2025-02-24T09:06:53","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=194554"},"modified":"2025-02-24T09:06:56","modified_gmt":"2025-02-24T09:06:56","slug":"the-major-revenue-of-a-merchandiser-is-while-the-major-expenses-is-are","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/24\/the-major-revenue-of-a-merchandiser-is-while-the-major-expenses-is-are\/","title":{"rendered":"The major revenue of a merchandiser is while the major expense(s) is (are)"},"content":{"rendered":"\n

The major revenue of a merchandiser is while the major expense(s) is (are) <\/strong>.<\/p>\n\n\n\n

A) sales revenue, cost of goods sold<\/p>\n\n\n\n

B) gross margin, operating expenses<\/p>\n\n\n\n

C) income from operations, cost of goods sold<\/p>\n\n\n\n

D) sales revenue, operating expenses<\/p>\n\n\n\n

The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n

The correct answer is:<\/p>\n\n\n\n

A) Sales revenue, cost of goods sold<\/strong><\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

A merchandiser<\/strong> is a business that earns revenue primarily by selling goods<\/strong> rather than providing services. In accounting, the major revenue and expenses of a merchandiser revolve around the buying and selling of inventory.<\/p>\n\n\n\n

Major Revenue \u2013 Sales Revenue<\/strong><\/h4>\n\n\n\n

The major source of revenue<\/strong> for a merchandising business is sales revenue<\/strong>, which represents the total income generated from selling goods to customers. Sales revenue is recorded when a sale transaction occurs, whether in cash or on credit. It is the top-line figure on an income statement and is critical in determining the business\u2019s profitability.<\/p>\n\n\n\n

Major Expense \u2013 Cost of Goods Sold (COGS)<\/strong><\/h4>\n\n\n\n

The largest expense<\/strong> for a merchandiser is typically the cost of goods sold (COGS)<\/strong>. This refers to the direct costs associated with purchasing or producing the goods sold during a period. It includes:<\/p>\n\n\n\n

    \n
  • The purchase price of goods from suppliers<\/li>\n\n\n\n
  • Freight-in (shipping costs to acquire inventory)<\/li>\n\n\n\n
  • Import duties and taxes<\/li>\n\n\n\n
  • Any direct costs necessary to make the product ready for sale<\/li>\n<\/ul>\n\n\n\n

    COGS is subtracted from sales revenue to calculate gross profit<\/strong>, which represents how much profit remains after covering the cost of inventory.<\/p>\n\n\n\n

    Why Not Other Options?<\/strong><\/h4>\n\n\n\n
      \n
    • B (Gross margin, operating expenses):<\/strong> Gross margin (gross profit) is an intermediate figure in the income statement, not the main revenue.<\/li>\n\n\n\n
    • C (Income from operations, COGS):<\/strong> Income from operations is not a revenue source but a result after deducting operating expenses.<\/li>\n\n\n\n
    • D (Sales revenue, operating expenses):<\/strong> While operating expenses are significant, the primary cost for a merchandiser is COGS.<\/li>\n<\/ul>\n\n\n\n

      Thus, the correct answer remains A) Sales revenue, cost of goods sold<\/strong>.<\/p>\n\n\n\n

      Now, generating an image representing this concept.<\/p>\n\n\n\n

      \"\"<\/figure>\n\n\n\n

      Here is the generated image illustrating the concept of a merchandiser’s revenue and expenses. Let me know if you need any modifications or additional explanations!<\/p>\n","protected":false},"excerpt":{"rendered":"

      The major revenue of a merchandiser is while the major expense(s) is (are) . A) sales revenue, cost of goods sold B) gross margin, operating expenses C) income from operations, cost of goods sold D) sales revenue, operating expenses The Correct Answer and Explanation is : The correct answer is: A) Sales revenue, cost of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-194554","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/194554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=194554"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/194554\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=194554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=194554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=194554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}