Karteikarten
Chapter 7 and 8 Key Terms
Karten in diesem Stapel (44)
- 1Chapter 7Chapter 7
- 2Trade discountReduction off original selling price (list price) not related to early payment
- 3Cash discountSavings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes
- 4List priceSuggested retail price paid by customers
- 5Trade discount amountList price less net price
- 6InvoiceDocument recording purchase and sales transactions
- 7Trade discount rateTrade discount amount given in percent
- 8Net priceList price less amount of trade discount. The net price is before any cash discount
- 9Freight termsDetermine how freight will be paid. Most common freight terms are FOB shipping point and FOB destination
- 10FOB shipping pointBuyer pays cost of freight in getting goods to his location
- 11FOB destinationSeller pays cost of freight in getting goods to buyer’s location
- 12Single trade discountCompany gives only one trade discount
- 13Complement100% less the stated percent
- 14Chain discountTwo or more trade discounts are applied to the balance remaining after the previous discount is taken. Often called a series discount
- 15Series discountTwo or more trade discounts are applied to the balance remaining after the previous discount is taken. Often called a series discount
- 16Net price equivalent rateWhen multiplied times the list price, this rate or factor produces the actual cost to the buyer. Rate is found by taking the complement of each term in the discount and multiplying them together
- 17Single equivalent discount rateRate or factor as a single discount that calculates the amount of the trade discount by multiplying the rate times the list price. This single equivalent discount replaces a series of chain discounts. The single equivalent rate is (1 – Net price equivalent rate)
- 18Terms of the saleCriteria on invoice showing when cash discounts are available, such as rate and time period
- 19Credit periodCredit days are counted from date of invoice. Has no relationship to the discount period
- 20Discount periodAmount of time to take advantage of a cash discount
- 21Due dateMaturity date, or when the note will be repaid
- 22End of credit periodLast day from date of invoice when customer can take cash discount
- 23Ordinary datingCash discount is available within the discount period. Full amount due by end of credit period if discount is missed
- 24Receipt of goods (ROG)Used in calculating the cash discount period; begins the day that the goods are received
- 25End of month (EOM)(also proximo) The cash discount period begins at the end of the month invoice is dated. After the 25th discount period, one additional month's results
- 26Chapter 8Chapter 8
- 27Selling priceCost plus markup equals selling price
- 28CostPrice retailers pay to manufacturer or supplier to bring merchandise into store
- 29MarkupAmount retailers add to cost of goods to cover operating expenses and make a profit
- 30MarginDifference between cost of bringing goods into store and selling price of goods
- 31Gross profitDifference between cost of bringing goods into the store and selling price of the goods
- 32Operating expenses (overhead)Regular expenses of doing business. These are not costs
- 33Overhead expensesOperating expenses not directly associated with a specific department or product
- 34Net profit (net income)Gross profit – Operating expenses
- 35Net incomeGross profit less operating expenses
- 36Dollar markupSelling price less cost. The difference is the amount of the markup. Markup is also expressed in percent
- 37Percent markup on costDollar markup divided by the cost; thus, markup is a percent of the cost
- 38Dollar markdownOriginal selling price less the reduction to price. Markdown may be stated as a percent of the original selling price
- 39PerishableGoods or services with a limited life
- 40Fixed costs (FC)Costs that do not change with increase or decrease in sales
- 41Variable costs (VC)Costs that do change in response to change in volume of sales
- 42Selling priceCost plus markup equals selling price
- 43Contribution margin (CM)Difference between selling price and variable cost
- 44Breakeven point (BE)Point at which seller has covered all expenses and costs and has made no profit or suffered a loss
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- Karteikarten am Chapter 7 and 8 Key Terms , erstellt von CHRISTIAN TIDIANE am 12/06/2023.
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- CHRISTIAN TIDIANE
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