IDIS 240 CERTIFICATION TEST PAPER COMPLETE QUESTIONS AND SOLUTIONS FULLY VERIFIED

IDIS 240 CERTIFICATION TEST PAPER
COMPLETE QUESTIONS AND SOLUTIONS
FULLY VERIFIED

●● List Price
Answer: The retail price listed


●● selling price
Answer: list price - trade discounts


●● Net price
Answer: = selling price - allowable discounts (cash discounts)
Net Sale


●● Cost of Good Sold (COGS)
Answer: = Cost of Merchandise + Freight from Manufacturer


●● Trade Discounts
Answer: specify term of sale and change of price with how they see fit.


●● Cash Discounts

,Answer: given to encourage buyers to promote payment promptly.


●● Special Orders
Answer: instructions given by the buyer on how to deliver or
manufacture the order.


●● Minimum Order vs. Freight Allowed
Answer: Minimum order:
The minimum amount you can order from a manufacturer


Freight Allowed:
manufacture pays for the shipping and just adds to the cost.


●● Claims
Answer: request for payment from the insurance company to cover
financial losses.


●● Returns
Answer: goods returned to the business that sold them


●● Operating Expense (OE)
Answer: all costs needed to provide necessary services.

, ●● SG&A
Answer: Selling, General and Administrative Expense


●● EBITDA: Earnings before interest, Taxes, depreciation, and
amortization
Answer: = Margin - OE - SG&A


●● EBIT
Answer: EBITDA - Depreciation and Amortization


●● Interest Expense
Answer: Not part of operating cost


●● NPBT
Answer: Net profit before taxes


●● NPAT
Answer: Net profit after taxes


●● Accounts payable
Answer: Money the distributor owes the manufacturer