CM- CH10 Test Review (P2)

Suggested price of a car being sold at an automobile dealer.

• sticker price

• automobile dealer

• manufacturer's suggested retail price (MSRP)

• trade-in allowance

Individual or company whose business is selling cars.

• sticker price

• automobile dealer

• manufacturer's suggested retail price (MSRP)

• trade-in allowance

Price of an item set by its manufacturer.

• sticker price

• automobile dealer

• manufacturer's suggested retail price (MSRP)

• trade-in allowance

Discount in the price of a car that is a result of the trade in of another car.

• sticker price

• automobile dealer

• manufacturer's suggested retail price (MSRP)

• trade-in allowance

Sales tax, title transfer fee, registration or license fee, and other costs that must be paid at the time a car is purchased.

• sticker price

• tax, title, and license (TT & L)

• depreciation

• straight- line

When an asset loses value.

• sticker price

• tax, title, and license (TT & L)

• depreciation

• straight- line

Most commonly used approach for determining depreciation, the rate of which can be found by dividing average annual depreciation by the original purchase price of an item.

• sticker price

• tax, title, and license (TT & L)

• depreciation

• straight- line

Guarantee from a manufacturer that the item purchased will perform to a certain standard or be free of defects for a specified period of time.

• manufacturer's warranty

• extended warranty

• automobile insurance

• liability coverage

Optional additional warranty off ered by manufacturers and third-party companies that can be purchased by the consumer.

• manufacturer's warranty

• extended warranty

• automobile insurance

• liability coverage

Insurance that protects a person and his or her vehicle in accidents

involving the vehicle.

• manufacturer's warranty

• extended warranty

• automobile insurance

• liability coverage