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IDIS 240 Exam 1 Vestal Questions and Answers 2025 | Comprehensive Study Guide

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Get ready for your IDIS 240 exam with this complete collection of questions and answers based on Professor Vestal's 2025 course. This study guide provides key concepts, potential test topics, and detailed answers to help you review effectively and achieve a higher grade. Ideal for students looking to test their knowledge and focus their study efforts.

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IDIS 240 EXAM 1 VESTAL QUESTIONS AND
ANSWERS 2025




List price - ...ANSWER... ✔ ✔published price of item


selling price - ...ANSWER... ✔ ✔= list price - trade
discounts(amnt appears on invoice)


selling price - ...ANSWER... ✔ ✔COGS
= ----------------------------
100% - %GM


net price - ...ANSWER... ✔ ✔actual money received
after discounts and adjustments


what you pay after cash discounts


selling price - allowable discounts


COGS - ...ANSWER... ✔ ✔Cost of Goods Sold

,2|Page




Cost of Goods Sold eq - ...ANSWER... ✔ ✔= (Cost
of merchandise) + (freight from Manufacturer)


FOB - ...ANSWER... ✔ ✔"free on board" - when the
price of the good includes the cost the freight


Freight - desitination - ...ANSWER... ✔
✔manufacturer puts item on truck and pays for it
- they own the goods while they're in transit


Freight - Shipping it - ...ANSWER... ✔
✔manufacturer puts on truck and distributor pays
shipping
- buyer owns goods while in transit


Trade discounts - ...ANSWER... ✔ ✔- specified in
sale (
- offered due to fluctuations in market conditions and
cost of the raw materials


trade pricing (Matrix pricing) - ...ANSWER... ✔
✔negotiating the actual price that will be paid

,3|Page




cash discounts - ...ANSWER... ✔ ✔discount for
paying cash (no credit)


Special orders - ...ANSWER... ✔ ✔modifications
design, finish, material, pakcing of order


minimum order - ...ANSWER... ✔ ✔amount that must
be ordered
(amount of freight that must be ordered)


Freight allowed - ...ANSWER... ✔ ✔certain amount
needed for free shipping


claims - ...ANSWER... ✔ ✔item that are damaged


REturns - ...ANSWER... ✔ ✔given item back because
they don't want it


Cash flow - ...ANSWER... ✔ ✔Cash in bank ->
Purchase Inventory -> Sold Inventory -> Account
Receivable -> Cash in Bank

, 4|Page



Margin Gross Margin - ...ANSWER... ✔ ✔= selling
price - COGS - Adjustments


difference btwn what distrib. pays and sells


GM - ...ANSWER... ✔ ✔Gross Margin


Percent Gross Margin - ...ANSWER... ✔ ✔[(selling
price - COGS) / (selling price)] * 100%


%GM - ...ANSWER... ✔ ✔Percent Gross Margin


Markup - ...ANSWER... ✔ ✔Money markup price


Percent Markup - ...ANSWER... ✔ ✔(selling price -
COGS)
-------------------------- * 100%
(COGS)


OE - ...ANSWER... ✔ ✔Operating Expenses

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