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Retail Accounting and Store Management

Retail Accounting and Store Management


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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ...to include everything chargeable to expense for which he expects to pay out money. Some of these items many merchants are not accustomed to include in their expense account. Depreciation of stock, as an illustration. The majority of retail merchants do not include this in their cost of doing business, yet in many businesses this is one of the heavy expenses. Shoes or millinery probably are lines of business where this would mean a heavy expense, while in the grocery business this cost is not so important, owing to the fact that the stock turns over more frequently and styles do not affect a stock of groceries. Probably the best way to arrive at the percentage of sales to be charged to depreciation is to make a careful calculation of all depreciations or markdowns on the stock for the previous year and divide this by the gross sales. This will give the percentage of depreciation for that year. Salary for the proprietor and interest on the investment are two other items included in the list that are frequently omitted from the cost of doing business. If the business is not sufficiently profitable to pay a legal rate of interest on the investment and a reasonable salary to the proprietor, it is unwise to take the risk incident to conducting a business. It would be more profitable for the merchant to invest his capital where it would at least earn the legal rate of interest and sell his services to others who will pay what it is reasonably worth. Statistics on Cost of Doing Business In 1913 Systems magazine gathered statistics on the cost of doing business in retail stores covering several different lines. These are of value for the purpose of comparison but should not be looked upon as a proper standard, although the table shown is made up by striking the aver...


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Product Details
  • ISBN-13: 9781235958663
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 34
  • Spine Width: 2 mm
  • Width: 189 mm
  • ISBN-10: 1235958663
  • Publisher Date: 01 May 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 82 gr


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