Final answer:
Merchandising companies require more steps in worksheet preparation due to inventory-related accounts such as cost of goods sold, inventory management, and merchandise purchases, unlike service companies that mostly deal with labor-related costs.
Step-by-step explanation:
Yes, there are indeed more steps involved in preparing a worksheet for a merchandising company than for a service company. This is largely due to the fact that merchandising companies deal with inventory, which adds complexity to their accounting processes. For instance, a merchandising company has to account for the cost of goods sold, inventory management, and merchandise purchases. In contrast, a service company usually does not have inventory and therefore skips these steps.
The costs in merchandising involve purchasing products for resale, whereas a service company's costs are primarily related to labor and service delivery. The comparison between different industries such as manufacturing cars versus producing computer software, haircuts, or fast-food meals, shows the diverse nature of costs based on the nature of goods and services provided.