Exam (elaborations)
IDIS 240 Final Exam TAMU Questions And Answers Latest Update
- Course
- IDIS 240
- Institution
- Purdue University
IDIS 240 Final Exam TAMU Questions And Answers Latest Update
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Solution 2024/2025Pepper
IDIS 240 Final Exam TAMU Questions And
Answers Latest Update
MRO ANS✔✔ maintenance, repair, and operations
Selling price = ANS✔✔ List Price - Trade Discounts
Net Price = ANS✔✔ selling price - allowable discounts (cash discounts)
net sale ANS✔✔ Actual money received after discounts and adjustments
Cost of Goods Sold (COGS) = ANS✔✔ Cost of Merchandise + Freight of
Manufacturer
FOB Shipping Point ANS✔✔ Distributor/ Buyer pays for shipping and owns
the product in transit
Trade Discounts ANS✔✔ Specified in term of sale. Offered by manufacturer
due to fluctuations in market conditions-- ex: raw materials cost
fluctuations.
FOB Destination ANS✔✔ Manufacturer pays for shipping and owns the
product in transit
, Solution 2024/2025
Pepper
Cash Discounts ANS✔✔ Offered by manufacturer to encourage early
payments
Trade Pricing ANS✔✔ Negotiating the actual price that will be paid as
opposed to "list price- trade discounts"
Special Orders ANS✔✔ products with some modification in design, finish,
materials, or packing
Minimum Order ANS✔✔ Manufacturer specifies the minimum allowable
order
Freight Allowed ANS✔✔ Amount that must be purchased to have the
manufacturer pay for the cost of freight
Why are adjustments made? ANS✔✔ substitutions, different quantities/
specifications, damaged or returned goods
Cash Flow ANS✔✔ Cash in Bank -> Purchased Inventory -> Sold inventory -
> Accounts receivable -> Cash in Bank· Lesser the cash flow cycle, lesser
cash is required to finance the business.
What is the rule of thumb for cash discounts? ANS✔✔ If possible, always
take them and never give them
Gross margin = ANS✔✔ selling price - COGS - Adjustments
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