Two categories of expenses in merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.

The correct answer is letter "C": expenses for merchandising companies.

Explanation:

Merchandising companies are those that buy goods from manufacturers or distributors to resell them at a higher price. Retails and Wholesales are examples of merchandising businesses.  

When it comes to expenses reported in their Financial Statements, merchandising companies record Costs of Goods Sold (COGS) which represents what the business paid for the inventory sold and Operating Expenses which are the expenditures incurred as a result of the operations of the company such as sales, advertising, delivery. rent, utilities, and depreciation to mention a few.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

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