ABM 309 REVIEWER Flashcards
(32 cards)
amount by which the retail price of a product is required by the manufacturer when it is sold to the reseller or customer
trade discount
a person who sells a product in small quantities for consumption rather than resale
retailer
supplies goods to another organization
supplier
price after all deductions
net price
AKA chain discount, additional discounts deducted one after the other from the list price
trade discount series
difference between the variable cost and selling price
markup
a deduction from the original SP due to promotional strategies, trend changes, seasonal changes, surplus of products, etc.
markdown
markup after a markup, happens during peak seasons or during shortage of production
mark-on
amount of money left from revenue after expenses
profit
when the cost exceeds the sales, cost price is greater than selling price
loss
the point where total cost of expenses and revenue are equal
breakeven
change as with changes in production levels
variable costs
remains thoroughly the same regardless of sales
fixed cost
selling price minus variable cost
contribution margin
fixed costs plus variable costs
total costs
percentage formula
P = B x R
net price formula
List price - Trade discount rate (?)
trade discount series formula
d = 1 - (1-d1)(1 - d2)(1 - d3)
markup formula
Markup = SP - C
markup rate based on cost
RateC = markup amount / variable cost x 100
markup rate based on selling price
RateSp = markup amount / selling price x 100
markup rate conversion based on cost
Markup Rate based on Selling Price / 1+ Markup Rate based on Selling Price x 100
markup rate conversion based on selling price
Markup Rate based on Cost / 1- Markup Rate based on Cost x 100
markdown rate formula
MDR = Markdown Amount / Original Selling Price x 100
