Section 10 Review (BU)

Front

A type of business that involves buying and selling of goods.

Back

Merchandising

Front

It is the product or good being sold.

Back

Inventory

Front

It is the discount given to the buyer of a product.

Back

Sales Discount

Front

The original cost of the product sold.

Back

Cost of Goods Sold (COGS)

Front

Gross profit equals the difference between net sales and

Back

cost of good sold

Front

If gross profit is $55,000 and cost of goods is $125,000, how much are total net sales?

Back

$180,000

Front

It is a major expense of the merchandising business. It is the cost of the merchandise that the company sold to its customers.

Back

Cost of Goods Sold

Front

Obtained by deducting the cost of goods sold from the net sales.

Back

Gross Profit

Front

These are ordinary and necessary expenses in the day-to-day running of the operations of the business. Examples include utilities, salaries, rent, etc.

Back

Operating Expenses

Front

If a retailer buys goods costing $2,000 and later sells them at a 25% markup, what is the selling price?

Back

$2,500