Business of Retail - Chapter 4 - Vocabulary

Front

The difference between revenue and the expenses of buying, producing and operations

Back

net profit

Front

The income generated from the sale of goods and services

Back

revenue

Front

These overhead expenditures are incurred to generate revenue

Back

operating expenses

Front

The amount by which revenue from sales exceeds business costs for all items

Back

GROSS PROFIT

Front

The direct costs associated with production of a product, including the raw materials used to make it and the labor costs

Back

cost of goods (COGS)

Front

item cost

Back

The amount paid by a retailer to the manufacturer or supplier for an item

Front

item retail

Back

The amount a customer pays the retailer for product

Front

markup

Back

The amount added to the cost of a product to determine the retail price. It generally covers expenses and provides a profit.

Front

gross profit

Back

The difference between revenue and cost of goods sold- the materials and labor required to produce the product

Front

Reductions to the original selling price of items to encourage rapid sales

Back

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