IDIS 240 Final Exam – Vestal
Questions & Answers17
Cash Flow - ANSWERS-Cash in bank > purchased inventory > sold inventory > accounts
receivable > cash in bank
List Price - ANSWERS-The retail price listed
selling price - ANSWERS-list price - trade discounts
Net price - ANSWERS-= selling price - allowable discounts (cash discounts)
Net Sale
Cost of Good Sold (COGS) - ANSWERS-= Cost of Merchandise + Freight from Manufacturer
Trade Discounts - ANSWERS-specify term of sale and change of price with how they see fit.
Cash Discounts - ANSWERS-given to encourage buyers to promote payment promptly.
Special Orders - ANSWERS-instructions given by the buyer on how to deliver or manufacture the
order.
Minimum Order vs. Freight Allowed - ANSWERS-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 - ANSWERS-request for payment from the insurance company to cover financial losses.
Returns - ANSWERS-goods returned to the business that sold them
Operating Expense (OE) - ANSWERS-all costs needed to provide necessary services.
SG&A - ANSWERS-Selling, General and Administrative Expense
EBITDA: Earnings before interest, Taxes, depreciation, and amortization - ANSWERS-= Margin -
OE - SG&A
EBIT - ANSWERS-EBITDA - Depreciation and Amortization
Interest Expense - ANSWERS-Not part of operating cost
NPBT - ANSWERS-Net profit before taxes
NPAT - ANSWERS-Net profit after taxes
Accounts payable - ANSWERS-Money the distributor owes the manufacturer
Accounts Receivable - ANSWERS-money the customer owes us
, Days Sales Outstanding - ANSWERS-Receivable Dollars * (365/sales)
Inventory - ANSWERS-What we have on hand to sell
Inventory Turn - ANSWERS-= (COGS from inventory / Average Warehouse Inventory)
Gross Margin Return on Inventory Investment (GMROII) - ANSWERS-= (Gross Margin Dollars
Earned on Warehouse Sales/ Average Warehouse inventory)
COGS - ANSWERS-= Cost of Merchandise + Freight from Manufacturer
FOB Destination - ANSWERS-manufacturer pays for the freight
FOB Shipping Point - ANSWERS-distributor pays for the freight
Cost of Merchandise - ANSWERS-Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
Trade Discounts - ANSWERS-Usually a discount off of a published list price or other published
price.
Trade Pricing - ANSWERS-Also know as other names such as "matrix pricing" or just "pricing".
Two drivers to growth of this type
Increasing complexity
System capabilities
Questions & Answers17
Cash Flow - ANSWERS-Cash in bank > purchased inventory > sold inventory > accounts
receivable > cash in bank
List Price - ANSWERS-The retail price listed
selling price - ANSWERS-list price - trade discounts
Net price - ANSWERS-= selling price - allowable discounts (cash discounts)
Net Sale
Cost of Good Sold (COGS) - ANSWERS-= Cost of Merchandise + Freight from Manufacturer
Trade Discounts - ANSWERS-specify term of sale and change of price with how they see fit.
Cash Discounts - ANSWERS-given to encourage buyers to promote payment promptly.
Special Orders - ANSWERS-instructions given by the buyer on how to deliver or manufacture the
order.
Minimum Order vs. Freight Allowed - ANSWERS-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 - ANSWERS-request for payment from the insurance company to cover financial losses.
Returns - ANSWERS-goods returned to the business that sold them
Operating Expense (OE) - ANSWERS-all costs needed to provide necessary services.
SG&A - ANSWERS-Selling, General and Administrative Expense
EBITDA: Earnings before interest, Taxes, depreciation, and amortization - ANSWERS-= Margin -
OE - SG&A
EBIT - ANSWERS-EBITDA - Depreciation and Amortization
Interest Expense - ANSWERS-Not part of operating cost
NPBT - ANSWERS-Net profit before taxes
NPAT - ANSWERS-Net profit after taxes
Accounts payable - ANSWERS-Money the distributor owes the manufacturer
Accounts Receivable - ANSWERS-money the customer owes us
, Days Sales Outstanding - ANSWERS-Receivable Dollars * (365/sales)
Inventory - ANSWERS-What we have on hand to sell
Inventory Turn - ANSWERS-= (COGS from inventory / Average Warehouse Inventory)
Gross Margin Return on Inventory Investment (GMROII) - ANSWERS-= (Gross Margin Dollars
Earned on Warehouse Sales/ Average Warehouse inventory)
COGS - ANSWERS-= Cost of Merchandise + Freight from Manufacturer
FOB Destination - ANSWERS-manufacturer pays for the freight
FOB Shipping Point - ANSWERS-distributor pays for the freight
Cost of Merchandise - ANSWERS-Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
Trade Discounts - ANSWERS-Usually a discount off of a published list price or other published
price.
Trade Pricing - ANSWERS-Also know as other names such as "matrix pricing" or just "pricing".
Two drivers to growth of this type
Increasing complexity
System capabilities
