Flashcards
Chapter 8 Key Terms
Cards in this deck (19)
- 1Selling PriceCost plus markup equals selling price.
- 2CostPrice retailers pay to manufacture or supplier to bring merchandise into store.
- 3MarkupAmount retailers add to cost of goods to cover operating expenses and make a profit.
- 4MarginDifference between cost of bringing goods into store and selling price of goods.
- 5Gross ProfitDifference between cost of bringing goods into the store and selling price of the goods.
- 6Operating ExpensesRegular expenses of doing business. These are not costs.
- 7Overhead ExpensesOperating expenses not directly associated with a specific department or product.
- 8Net ProfitGross profit - Operating expenses.
- 9Net IncomeGross profit less operating expenses.
- 10Dollar MarkupSelling price less cost. Difference is the amount of the markup. Markup is also expressed in percent.
- 11Percent Markup on CostDollar markup divided by the cost; thus, markup is a percent of the cost.
- 12MarkdownsReductions from original selling price caused by seasonal changes, special promotions, and so on.
- 13Dollar MarkdownOriginal selling price less the reduction to price. Markdown may be stated as a percent of the original selling price.
- 14PerishableGoods or services with a limited life.
- 15Fixed Costs (FC)Costs that do not change with increase or decrease in sales.
- 16Variable Costs (VC)Costs that do change in response to change in volume of sales.
- 17Selling PriceCost plus markup equals selling price.
- 18Contribution Margin (CM)Difference between selling price and variable cost.
- 19Breakeven 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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- Description
- Flash cards for chapter 8 to help with the definition of the key terms.
- Created by
- Veronica Huninghake
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