© EVERLY 2025 ALL RIGHTS RESERVED.
IDIS 240 EXAM 2 - EVAN VESTAL –
SPRING Questions And Answers 100% Pass.
List Price - Answer✔Nationally Advertised Price
Selling Price - Answer✔List Price - Trade Discounts
= COGS + Margin
or
= COGS + Markup
Net Price - Answer✔Selling price - all allowable discounts (cash discounts), equal to selling
price IF NO DISCOUNTS
Cost of Goods Sold (COGS) - Answer✔Cost of Merchandise + Freight charges from
Manufacturer
Freight Cost - Answer✔The cost of moving an item from where it was manufactured to either
the distributor or the customer's location
Free On Board (FOB) - Answer✔- Commonly used on the invoice to show who is to pay the
transportation charges
- Who is to control the movement of the shipment
- Where the title passes to the buyer
Free On Board (FOB) Destination - Answer✔Manufacturer pays to have it delivered, own the
product while it's being transported
Free On Board (FOB) Shipping Point *** - Answer✔Once the manufacturer puts it on the trust,
distributor pays for it and they own it
Trade Discounts - Answer✔- Means of adjusting the price for variations in the cost of raw
materials
1|Page
, © EVERLY 2025 ALL RIGHTS RESERVED.
- Competitive pricing in the marketplace
- For services provided by the distributor (stocking the item)
Trade Pricing *** - Answer✔- A pricing methodology that involves negotiating the actual price
that will be paid as opposed to "list price - a discount" method
- Referred to as matrix pricing, a markup from a confidential negotiated distributor cost
Two drivers to growth of this type
- Increased complexity
- System capabilities
Cash Discounts *** - Answer✔- Offered to encourage early payment of invoices and when taken
they will enhance the sellers cash flow
- Amount that can be subtracted by the total amount of the invoice by the distributor before
paying the bill
- Offered as encouragement to a distributor to pay their invoice within a specific amount of time
- CASH DISCOUNTS ARE NOT GIVEN, they are offered then taken or refused by the
distributor
- Cash discounts are important to profitability
Special Orders - Answer✔Usually consist of standard products with slight modifications to
design, finish, materials and packaging
Minimum Order - Answer✔Minimum amount you need to order to purchase
Freight Allowed - Answer✔Amount that must be purchased to have the manufacturer pay the
cost of the freight for a standard shipment
Claims - Answer✔Making a claim that it is broken, damaged, lost. Billing or shipping errors,
shortages
2|Page
IDIS 240 EXAM 2 - EVAN VESTAL –
SPRING Questions And Answers 100% Pass.
List Price - Answer✔Nationally Advertised Price
Selling Price - Answer✔List Price - Trade Discounts
= COGS + Margin
or
= COGS + Markup
Net Price - Answer✔Selling price - all allowable discounts (cash discounts), equal to selling
price IF NO DISCOUNTS
Cost of Goods Sold (COGS) - Answer✔Cost of Merchandise + Freight charges from
Manufacturer
Freight Cost - Answer✔The cost of moving an item from where it was manufactured to either
the distributor or the customer's location
Free On Board (FOB) - Answer✔- Commonly used on the invoice to show who is to pay the
transportation charges
- Who is to control the movement of the shipment
- Where the title passes to the buyer
Free On Board (FOB) Destination - Answer✔Manufacturer pays to have it delivered, own the
product while it's being transported
Free On Board (FOB) Shipping Point *** - Answer✔Once the manufacturer puts it on the trust,
distributor pays for it and they own it
Trade Discounts - Answer✔- Means of adjusting the price for variations in the cost of raw
materials
1|Page
, © EVERLY 2025 ALL RIGHTS RESERVED.
- Competitive pricing in the marketplace
- For services provided by the distributor (stocking the item)
Trade Pricing *** - Answer✔- A pricing methodology that involves negotiating the actual price
that will be paid as opposed to "list price - a discount" method
- Referred to as matrix pricing, a markup from a confidential negotiated distributor cost
Two drivers to growth of this type
- Increased complexity
- System capabilities
Cash Discounts *** - Answer✔- Offered to encourage early payment of invoices and when taken
they will enhance the sellers cash flow
- Amount that can be subtracted by the total amount of the invoice by the distributor before
paying the bill
- Offered as encouragement to a distributor to pay their invoice within a specific amount of time
- CASH DISCOUNTS ARE NOT GIVEN, they are offered then taken or refused by the
distributor
- Cash discounts are important to profitability
Special Orders - Answer✔Usually consist of standard products with slight modifications to
design, finish, materials and packaging
Minimum Order - Answer✔Minimum amount you need to order to purchase
Freight Allowed - Answer✔Amount that must be purchased to have the manufacturer pay the
cost of the freight for a standard shipment
Claims - Answer✔Making a claim that it is broken, damaged, lost. Billing or shipping errors,
shortages
2|Page
