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13 Cards in this Set
- Front
- Back
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trade discount
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reduction off the original selling price(list price) not related to early payment
trade discount amount=list price x trade discount rate |
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cash discount
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result of an early payment based on the terms od sale
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trade discount rate
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persent off the list price that retailers can deduct
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net price
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price that retailer pays for an item
net price= list price-trade discount amount |
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single trade discount
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one trade discount
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complement
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difference between the discount rate and 100%
Ex.1-.4=.6 |
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chain discount
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trade discounts in a series of two or more discounts
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net price equivalent rate
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find the complement, multiply decimal. Do not round off. multiply list price times the net price equivalent rate
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single equivalent discount rate
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subtact net price equivalent rate from 1. multiply the list price times single equivalent discount rate = trade discount amount
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markup
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price which retailers sell items to cover operating expenses and make a profit
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perishable
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selling price perishable=total$/#of units produced(spoilage)
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inventory turnover at retail
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net sales/average invnetory @ retail
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inventory turnover at cost
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cost of goods sold/average inventory @ cost
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