BusMath Midterm Test Reviewer

It is the amount of money that is added to the original cost of an item to arrive at a selling price.

• Gross Margin

• Markdown

• Markup

• Single Trade Discount

It is a list price reductions that a business may offer to its business customers.

• Gross Margin

• Markdown

• Markup

• Single Trade Discount

It is a fee that a business pays to a salesperson (agent) in exchange for his services in either facilitating, supervising, or completing a sale.

• Commission

• Time Value of Money

• Discount Series

• Simple Interest

The fact that money received today is worth more than money received next year or the year after.

• Commission

• Time Value of Money

• Discount Series

• Markup

It is the price at which the item is actually sold.

• Markup Rate

• Original Cost

• Selling Price

• Discount Price

Two ways of calculating Trade Discounts: _____ and _____

The following are the types of commission except:

• Salary Plus Commission

• Graduated Commission

• Straight Commission

• Compounded Commission

It is the amount that is paid for the use of another party’s money.

• Principal

• Rate

• Time

• Interest

It is the ratio of the markup to the selling price.

• Markup

• Markdown

• Gross Margin

• Discount

It is the amount a business actually pays for the merchandise after the discount has been deducted.

• Net Price

• List Price

• Discount Price

• Original Price