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38 Cards in this Set
- Front
- Back
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advanced dating (seasonal dating) |
in which the invoice date is advanced so that additional time is allowed for payment and the deduction of the cash discount |
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alteration and workroom costs |
a charge to a selling department when it is necessary to put merchandise in condition for sale (e.g. assembling, polishing, making cuffs) |
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anticipation |
a discount earned by retailers, under certain conditions, for the payment of invoices prior to expiration of cash discount period |
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billed cost |
the manufacturer's price for goods offered to a retailer |
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cash discount |
a percentage deducted from the cost of goods for conformance to prearranged terms of payment of an invoice between the vendor and retailer |
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COD dating |
a form of dating in which payment must be made "on the spot" as delivery occurs |
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cost |
the amount a retailer pays a resource for purchases |
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cost of goods sold |
the cost of merchandise that has been sold during a given period |
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customer returns and allowances |
the amount of reduction in price the customer has been given after a sale has been made |
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dating |
an agreement specifying time period for payment of an invoice |
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direct expenses |
expenses that exist only within a given department and cease if that department is discontinued (e.g. department advertising) |
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discount date |
the date by which an invoice must be paid to take advantage of the discount granted |
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EOM dating |
computation of the cash discount period from the end of the month in which the invoice is dated rather than from the date of the invoice itself |
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extra dating |
a specific number of days granted during which a discount may be taken |
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FOB retailer |
in which the resource pays transportation |
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gross margin |
the remainder after substracting total cost of goods sold from the total retail amount of sales. Also called gross profit. The difference between net sales and the cost of goods sold |
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gross sales |
retail value of total initial sales prior to deduction of dollar amount returned by customers |
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indirect expenses |
expenses that consist of some store expenses, which are prorated to all selling departments on the basis of sales volume |
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inward freight |
the amount charged for transporting merchandise to designated premises, e.g., trucking, freight, postage, and so on. Charges are paid by either vendor or retailer according to an agreement between them at the time of purchase |
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list price |
a theoretical retail price set by manufacturers |
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loading |
intentionally increasing the amount of the invoice to a price that would allow a theoretically greater cash discount, but which results in paying the net amount that the vendor quotes |
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net cost
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when no additional discounts are earned on merchandise purchased |
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net loss |
when the operating expenses are greater than the gross margin |
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net payment date |
the date by which an invoice must be paid to acquire a favorable credit rating and avoid late penalties |
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net profit |
the difference between gross margins and operating expenses |
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net sales |
the sales after customer returns and allowances have been deducted from gross sales |
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net terms |
a condition of sale in which a cash discount is neither offered nor permitted |
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operating expenses |
disbursals incurred in running an organization. There are two types, direct and indirect. |
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operating income |
in retailing, this is the net sales |
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quantity discount |
a percentage deduction from billed cost allowable when the dollar or unit amount on an order for goods falls within certain predesignated limits |
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regular dating |
discount date calculated from date of invoice. Also called ordinary dating |
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retail |
price at which stores offer merchandise for sale |
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ROG dating |
receipt of goods used in dating terms to denote the beginning of a discount period |
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sales volume |
indicates in dollars how much merchandise has been sold |
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terms of sale |
arrangement between merchandise source or vendor and retailer relative to time period of invoice, cost of merchandise, shipping charges, and transportation arrangements |
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total cost of goods purchased |
combined cost of merchandise purchased and inward transportation charges |
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total cost of goods sold |
results from subtracting cash discounts and adding alteration and workroom costs to the gross cost of merchandise sold |
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trade discount |
a percentage or series of percentages deducted from a list price, thereby determining cost price |
