Retail Store Management

Cover Retail Store Management
Retail Store Management
Paul H Paul Henry Nystrom
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Depaetmentalization and Its Limits In order that the accounting system may show just what part of the business is gaining and what part losing or making no progress, classification and departmentah- zation is necessary. The merchandise should be depart- mentalized, and expenses should be classified.
One of the earliest forms of departmentalization seen in the general merchandise stores is the division of the general stock into lines corresponding to those handled by specialty stores — groceries
..., dry goods, shoes, hard- ware, etc. While this is a step in the right direction, departmentalization is now carried very much further. Specialty stores themselves, such as grocery stores, shoe stores, and jewelry stores often classify their merchan- dise stocks into a dozen or fifteen or even more groups. By applying accounting to each of these groups instead of to the whole stock as a unit, the profitable lines are definitely discovered and the unprofitable lines isolated and eliminated.
How far departmentalization should be carried is hard to say.


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