Merchandising Company

This category is for companies that sell either wholesale or retail products.  For example, a distributor or sporting goods store would be representative of this type of company.

The term used for this type of company in calculating expenses is called Cost of Goods (COG).  Essentially, it is the difference between the purchase price of good(s) and the sales price(s) they are sold for.  It will also contain all of the facility and sales personnel expense in this calculation, along with beginning and ending inventory.

Other costs will include marketing and promotional costs.  On the balance sheet, most will use Fixtures, Furnishings and Equipment vs. Property, Plant and Equipment.