IDIS 240 FINAL ACTUAL PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ List Price. Answer: The retail price listed
◉ selling price. Answer: list price - trade discounts
◉ Net price. Answer: = selling price - allowable discounts (cash
discounts)
Net Sale
◉ Cost of Good Sold (COGS). Answer: = Cost of Merchandise +
Freight from Manufacturer
◉ Trade Discounts. Answer: specify term of sale and change of price
with how they see fit.
◉ Cash Discounts. Answer: given to encourage buyers to promote
payment promptly.
◉ Special Orders. Answer: instructions given by the buyer on how to
deliver or manufacture the order.
,◉ Minimum Order vs. Freight Allowed. Answer: Minimum order:
The minimum amount you can order from a manufacturer
Freight Allowed:
manufacture pays for the shipping and just adds to the cost.
◉ Claims. Answer: request for payment from the insurance company
to cover financial losses.
◉ Returns. Answer: goods returned to the business that sold them
◉ Operating Expense (OE). Answer: all costs needed to provide
necessary services.
◉ SG&A. Answer: Selling, General and Administrative Expense
◉ EBITDA: Earnings before interest, Taxes, depreciation, and
amortization. Answer: = Margin - OE - SG&A
◉ EBIT. Answer: EBITDA - Depreciation and Amortization
, ◉ Interest Expense. Answer: Not part of operating cost
◉ NPBT. Answer: Net profit before taxes
◉ NPAT. Answer: Net profit after taxes
◉ Accounts payable. Answer: Money the distributor owes the
manufacturer
◉ Accounts Receivable. Answer: money the customer owes us
◉ Days Sales Outstanding. Answer: Receivable Dollars * (365/sales)
◉ Inventory. Answer: What we have on hand to sell
◉ Inventory Turn. Answer: = (COGS from inventory / Average
Warehouse Inventory)
◉ Gross Margin Return on Inventory Investment (GMROII). Answer:
= (Gross Margin Dollars Earned on Warehouse Sales/ Average
Warehouse inventory)
QUESTIONS WITH SOLUTIONS GRADED A+
◉ List Price. Answer: The retail price listed
◉ selling price. Answer: list price - trade discounts
◉ Net price. Answer: = selling price - allowable discounts (cash
discounts)
Net Sale
◉ Cost of Good Sold (COGS). Answer: = Cost of Merchandise +
Freight from Manufacturer
◉ Trade Discounts. Answer: specify term of sale and change of price
with how they see fit.
◉ Cash Discounts. Answer: given to encourage buyers to promote
payment promptly.
◉ Special Orders. Answer: instructions given by the buyer on how to
deliver or manufacture the order.
,◉ Minimum Order vs. Freight Allowed. Answer: Minimum order:
The minimum amount you can order from a manufacturer
Freight Allowed:
manufacture pays for the shipping and just adds to the cost.
◉ Claims. Answer: request for payment from the insurance company
to cover financial losses.
◉ Returns. Answer: goods returned to the business that sold them
◉ Operating Expense (OE). Answer: all costs needed to provide
necessary services.
◉ SG&A. Answer: Selling, General and Administrative Expense
◉ EBITDA: Earnings before interest, Taxes, depreciation, and
amortization. Answer: = Margin - OE - SG&A
◉ EBIT. Answer: EBITDA - Depreciation and Amortization
, ◉ Interest Expense. Answer: Not part of operating cost
◉ NPBT. Answer: Net profit before taxes
◉ NPAT. Answer: Net profit after taxes
◉ Accounts payable. Answer: Money the distributor owes the
manufacturer
◉ Accounts Receivable. Answer: money the customer owes us
◉ Days Sales Outstanding. Answer: Receivable Dollars * (365/sales)
◉ Inventory. Answer: What we have on hand to sell
◉ Inventory Turn. Answer: = (COGS from inventory / Average
Warehouse Inventory)
◉ Gross Margin Return on Inventory Investment (GMROII). Answer:
= (Gross Margin Dollars Earned on Warehouse Sales/ Average
Warehouse inventory)
