Flashcards
Practical Business Math Procedures - Chapter 8 Key Terms Flash Cards
Cards in this deck (17)
- 1Breakeven pointPoint at which seller has covered all expenses and costs and has made no profit or suffered a loss.
- 2Contribution marginSelling price - variable cost.
- 3CostPrice retailers pay to manufacture or supplier to bring merchandise into store.
- 4Dollar markdownSelling price - reduction in price.
Markdown may be stated as a percentage of the original selling price. - 5Dollar markupSelling price - cost.
Difference is the amount of the markup. Markup is also expressed in percentages. - 6Fixed costCost that doesn't change with increase or decrease in sales.
- 7Gross profitDifference between cost of bringing goods into the store and selling price of the goods.
- 8MarginDifference between cost of bringing goods into store and selling price of goods.
- 9MarkdownsReductions from original selling price caused by seasonal changes, special promotions, and so on.
- 10MarkupAmount retailers add to cost of goods to cover operating expenses and make a profit.
- 11Net profit (net income)Gross profit - operating expenses.
- 12Operating expenses (overhead)Regular expenses of doing business. Not directly associated with a specific department or product. These are not costs.
- 13Percent markup on costDollar markup ÷ cost.
- 14Percent markup on selling priceDollar markup ÷ selling price.
- 15PerishablesGoods or services with a limited life.
- 16Selling priceCost + markup.
- 17Variable costCost that changes in response to change in volume of sales.
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- Flash cards for the Key Terms section of Practical Business Math Procedures Chapter 8.
- Created by
- DANIEL OLDHAM
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