Exam One Flashcards
1
Q
Primary Reason for Business?
A
Make Profit / Money
2
Q
Analytics
A
Help decision makers make better informed decisions
3
Q
How do you increase Profit?
A
Either selling more or selling more efficiently - Reduce Costs
4
Q
Wholesale Distribution
A
Everyone doesn’t pay the same price for a product
5
Q
Cost
A
What you pay for an item
6
Q
Price
A
What your customer pays for an item
7
Q
Markup
A
Difference between what you pay vs how much you charge
8
Q
Three types of costs
A
- Replacement
- Market
- WAC
9
Q
Replacement cost
A
Cost of the item from the vendor
10
Q
Market Cost
A
- Higher than replacement cost
- Accounts for damage, freight, and theft
- More accurately reflects “True Cost” and is what most distributors will use to determine the price of an item
11
Q
Weighted Average Cost (WAC)
A
- True cost of inventory
- Used for tax and accounting purposes
12
Q
Steps to selling an item
A
- Sell the requested Item
- Offer substitute
- Offer upselling items
13
Q
4 Groups to consider when making decisions
A
- Customers
- Competition
- Distributor stock / share holders
- Vendors
14
Q
Customer
A
Who is buying from you
15
Q
Vendor / supplier
A
Who you are buying from
16
Q
Purchaser / Buyer
A
Your representative who buys from vendor
17
Q
Purchase Order
A
How you buy from vendor
