Replies

1. The post is perfect for the question for three reasons. First, it uses a language that can be easily understood by even a company owner who has no basic knowledge in financial accounting. Second, the post shows how much simpler it is to maintain a computerized accounting system compared to a manual system. Finally, it wraps up by giving the advantages of using the computerized accounting system.

However, I would suggest showing that the cost of running a manual accounting system would be higher than that of running a computerized accounting system. It would also save the company some time as the data is only entered once into the system.

• The post answers the question exhaustively and accurately. It also gives good examples for both the service and merchandise businesses. The language used is also simple and understandable.
• The post is a poor post. It does not even attempt to handle the question. A good post should be able to determine which between the two, merchandise and service businesses, would be more profitable, or explain the factors that determine the profitability of the business. Example:

The profitability of a business does not depend on whether a business is a merchandise business or a service business. Instead, it depends on a set of factors. First, it depends on the sales of a business. The more the sales, the more profits it is able to make.  Secondly, there is the cost of staying in business. If a business pays out too much in terms of rent and labor, it profitability goes down. Third, there are the expenses of a business in the form of transport, bills, and others. A company should lower its expenses to stay profitable. Finally, there is the issue of pricing. A good price is the highest price that the customers are willing to pay for a product. Both merchandise and service businesses can be profitable if these factors are kept in mind (Parkitna, & Sadowska, 2011).

References

Parkitna, A., & Sadowska, B., (2011). Factors determining the profitability of enterprises – influence assessment. Operations research and decisions, (2) pp. 45-58