As we discuss managerial accounting, remember that most companies fall into one of three categories: service companies, merchandising companies, and/or manufacturing companies. Some companies are also hybrids of these categories. For example, Publix is a major grocery chain in the southeast United States, which is a hybrid of a merchandising and manufacturing company; selling groceries, but also manufacturing many items they sell under their own Publix label.

Below is a link to a website that explains the difference between these different types of companies:

http://accountinginfocus.com/managerial-accounting-2/introduction-managerial-accounting-2/types-of-companies/

After reading the website, discuss how managerial accounting and job costing would differ between the different types of companies. For manufacturing companies, explain the difference between raw material inventory, work-in-progress, and finished goods inventory. Why do manufacturing companies maintain 3 different inventory accounts?