Flashcards
Key Terms for Chapter 8
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 MarginDifference between selling price and variable cost
- 3CostPrice retailers pay to a manufacturer or supplier to bring merchandise into store
- 4Dollar MarkdownOriginal selling price less the reduction price. Markdown may be stated as a percent of the original selling price: Dollar Markdown / Original Selling Price
- 5Dollar MarkupSelling price less cost. Difference is the amount of markup. Markup is also expressed in percent
- 6Fixed CostCosts that do not 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. These are not costs
- 13Percent Markup on CostDollar markup divided by cost; thus, markup is a percent of the cost
- 14Percent Markup on Selling PriceDollar markup divided by the selling price; thus, markup is a percent of the selling price
- 15PerishablesGoods or services with a limited life
- 16Selling PriceCost + Markup = Selling Price
- 17Variable CostCosts that do change in response to change in volume of sales
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- Chapter 8 Key Terms of "Practical Business Math Procedures" by Jeffrey Slater
- Created by
- Laura Samuelson · Sep 2024
- Updated
- Sep 6, 2024
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