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Chapter 2 (6th edition) Building Blocks of Managerial Accounting Directed Reading Part I- Introduction 1. What are some of the business activities that drive market share and sales revenue, yet cost Toyota money to perform? 2. Why is a common understanding of concepts and terminology important? Part II- What are the most common business sectors and their activities? (LO 1 and LO 2) 3. Service companies are in business to sell ___________________; they usually don’t have _________________. _______________________________________make up the bulk of their costs. An example of a service company would be: 4. Merchandising are in business to sell ______________________. These companies generate profit by __________________________________ __________________ They typically have _______ inventory account on their balance sheet

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