Chapter 4 Business of Retail Review

Which of the following refers to the income generated from the sale of goods and services?

• Cost of goods
• Item cost
• Revenue
• Operating expenses

Which of the following refers to the amount added to the cost of a product to determine the retail price?

• Markup
• Markdown
• Item cost
• Item retail

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

• Item cost
• Item retail
• Operating expenses
• Cost of goods (COGS)

Which of the following refers to the difference between revenue and the expenses of buying, producing and operations?

• Item retail
• Net profit
• Revenue
• Item cost

Which of the following refers to the amount by which revenue from sales exceeds business costs for all items?

• Gross profit
• Net profit
• Profit margin percentage
• Operating expenses

Which of the following refers to the reductions to the original selling price to items to encourage rapid sales?

• Markups
• Markdowns
• Item cost
• Item retail

Which of the following refers to the amount paid by a retailer to the manufacturer or supplier for an item?

• Expense
• Revenue
• Item cost
• Item retail

Which of the following refers to the overhead expenditures incurred to generate revenue?

• Cost of goods (COGS)
• Net profit
• Item cost
• Operating expenses

Which of the following refers to the difference between revenue and cost of goods sold?

• Operating expenses
• Gross profit
• Profit margin percentage
• Net profit

Which of the following refers to the amount a customer pays the retailer for a product?

• Item retail price
• Item cost
• Revenue
• Expense