Question 5 ()

Part A ()

You have been the Head of Finance for the past 3 years of a medium sized merchandising business that sells sports goods in Western Australia. You have been asked by the Board of Directors the following:

1. Explain the profit measurement process in a merchandising business.(1 mark) 2 paragraphs

[Answer here]

2. Explain how profit measurement differs between a merchandising business and a service business. (1 mark) 2 paragraphs

[Answer here]