Business Simulation

This is an arrangement in which goods are left in the possession of an authorized third party to sell.

• Consignment

• Replenishment

• Thresholds

It means once the item is being sold, they need to order again to replace what ever they sold.

• Consignment

• Replenishment

• Thresholds

It means you don’t have to wait for product inventory to be empty before ordering new product to display.

• Consignment

• Replenishment

• Thresholds

This is the cost of product coming from the supplier or manufacturer.

• Purchase Cost

• Suggested Retail Price (SRP)

• Profit

• Value Added Tax

It is the price at which the manufacturer recommends that the retailer sell the product.

• Purchase Cost

• Suggested Retail Price (SRP)

• Profit

• Value Added Tax

It might be referred to as a type of a general consumption tax.

• Purchase Cost

• Suggested Retail Price (SRP)

• Profit

• Value Added Tax

It is the difference between the SRP and Purchase Cost.

• Purchase Cost

• Suggested Retail Price (SRP)

• Profit

• Value Added Tax

If the price of an item is $100 and the VAT rate is 10%, what is the VAT amount?

(a)  

If a company purchases goods worth $5,000 with a VAT rate of 15%, what is the total cost including VAT?

(a)  

A company purchases goods worth $10,000 with a VAT rate of 5%. What is the VAT amount?

(a)