IDIS 240 FINAL COMPREHENSIVE
EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ 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)
◉ COGS. Answer: = Cost of Merchandise + Freight from
Manufacturer
◉ FOB Destination. Answer: manufacturer pays for the freight
◉ FOB Shipping Point. Answer: distributor pays for the freight
◉ Cost of Merchandise. Answer: Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
◉ Trade Discounts. Answer: Usually a discount off of a published list
price or other published price.
◉ Trade Pricing. Answer: Also know as other names such as "matrix
pricing" or just "pricing".
Two drivers to growth of this type
Increasing complexity
, System capabilities
◉ Commodity. Answer: Products that have very little measurable
difference between suppliers.
Pure commodities are typically refer to raw materials such as
copper, gold, chemicals, etc.
◉ Commoditization. Answer: Difference between products has
narrowed over time. Common among products that have pure
commodities as a large portion of the finished product.
Examples include dimensional lumber, PVC pipe, aluminum and
copper wire, etc.
◉ Deviations from Standard COGS. Answer: OEM example
Ship from Stock and Debit
Construction Projects
Meet competition
EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ 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)
◉ COGS. Answer: = Cost of Merchandise + Freight from
Manufacturer
◉ FOB Destination. Answer: manufacturer pays for the freight
◉ FOB Shipping Point. Answer: distributor pays for the freight
◉ Cost of Merchandise. Answer: Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
◉ Trade Discounts. Answer: Usually a discount off of a published list
price or other published price.
◉ Trade Pricing. Answer: Also know as other names such as "matrix
pricing" or just "pricing".
Two drivers to growth of this type
Increasing complexity
, System capabilities
◉ Commodity. Answer: Products that have very little measurable
difference between suppliers.
Pure commodities are typically refer to raw materials such as
copper, gold, chemicals, etc.
◉ Commoditization. Answer: Difference between products has
narrowed over time. Common among products that have pure
commodities as a large portion of the finished product.
Examples include dimensional lumber, PVC pipe, aluminum and
copper wire, etc.
◉ Deviations from Standard COGS. Answer: OEM example
Ship from Stock and Debit
Construction Projects
Meet competition
