Chapter 4.1 Exercise 27

What is the income generated from the sale of goods and services called?

• Markup

• Revenue

• Net Profit

• Gross Profit

What term describes the amount added to the cost of a product to determine the retail price?

• Markdowns

• Item Cost

• Markup

• Operating Expenses

Which term refers to the direct costs associated with the production of a product, including the raw materials used to make it and the labor costs?

• Cost of Goods Sold (COGS)

• Gross Profit

• Net Profit

• Revenue

What is the difference between revenue and expenses of buying, producing, and operations?

• Markup

• Net Profit

• Item Retail

• Operating Expenses

What is the term for the amount by which revenues from sales exceed business costs for all items?

• Profit Margin Percentage

• Markdowns

• Item Cost

• Revenue

What are reductions to the original selling price of items to encourage rapid sales called?

• Markup

• Markdowns

• Operating Expenses

• Gross Profit

What is the amount paid by a retailer to the manufacturer or supplier for an item?

• Item Cost

• Revenue

• Net Profit

• Markup

What are the overhead expenditures incurred to generate revenues?

• Operating Expenses

• Gross Profit

• Markdowns

• Item Retail

What is the difference between revenue and cost of goods sold, including materials and labor?

• Gross Profit

• Net Profit

• Revenue

• Markup

What is the amount that the customer pays the retailer for a product?

• Item Retail Cost

• Markup

• Operating Expenses

• Profit Margin Percentage