IDIS 240 Final Exam – Vestal 2026 With
Complete Solutions
Cash Flow - correct answer <<<<<💕💕💕✔✔Cash in bank > purchased inventory > sold inventory
> accounts receivable > cash in bank
List Price - correct answer <<<<<💕💕💕✔✔The retail price listed
selling price - correct answer <<<<<💕💕💕✔✔list price - trade discounts
Net price - correct answer <<<<<💕💕💕✔✔= selling price - allowable discounts (cash discounts)
Net Sale
Cost of Good Sold (COGS) - correct answer <<<<<💕💕💕✔✔= Cost of Merchandise + Freight from
Manufacturer
Trade Discounts - correct answer <<<<<💕💕💕✔✔specify term of sale and change of price with
how they see fit.
Cash Discounts - correct answer <<<<<💕💕💕✔✔given to encourage buyers to promote payment
promptly.
Special Orders - correct answer <<<<<💕💕💕✔✔instructions given by the buyer on how to deliver
or manufacture the order.
Minimum Order vs. Freight Allowed - correct 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 - correct answer <<<<<💕💕💕✔✔request for payment from the insurance company to
cover financial losses.
Returns - correct answer <<<<<💕💕💕✔✔goods returned to the business that sold them
Operating Expense (OE) - correct answer <<<<<💕💕💕✔✔all costs needed to provide necessary
services.
SG&A - correct answer <<<<<💕💕💕✔✔Selling, General and Administrative Expense
EBITDA: Earnings before interest, Taxes, depreciation, and amortization - correct answer
<<<<<💕💕💕✔✔= Margin - OE - SG&A
EBIT - correct answer <<<<<💕💕💕✔✔EBITDA - Depreciation and Amortization
Interest Expense - correct answer <<<<<💕💕💕✔✔Not part of operating cost
NPBT - correct answer <<<<<💕💕💕✔✔Net profit before taxes
NPAT - correct answer <<<<<💕💕💕✔✔Net profit after taxes
Accounts payable - correct answer <<<<<💕💕💕✔✔Money the distributor owes the manufacturer
Accounts Receivable - correct answer <<<<<💕💕💕✔✔money the customer owes us
Days Sales Outstanding - correct answer <<<<<💕💕💕✔✔Receivable Dollars * (365/sales)
, Inventory - correct answer <<<<<💕💕💕✔✔What we have on hand to sell
Inventory Turn - correct answer <<<<<💕💕💕✔✔= (COGS from inventory / Average Warehouse
Inventory)
Gross Margin Return on Inventory Investment (GMROII) - correct answer <<<<<💕💕💕✔✔=
(Gross Margin Dollars Earned on Warehouse Sales/ Average Warehouse inventory)
COGS - correct answer <<<<<💕💕💕✔✔= Cost of Merchandise + Freight from Manufacturer
FOB Destination - correct answer <<<<<💕💕💕✔✔manufacturer pays for the freight
FOB Shipping Point - correct answer <<<<<💕💕💕✔✔distributor pays for the freight
Cost of Merchandise - correct answer <<<<<💕💕💕✔✔Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
Trade Discounts - correct answer <<<<<💕💕💕✔✔Usually a discount off of a published list price
or other published price.
Trade Pricing - correct answer <<<<<💕💕💕✔✔Also know as other names such as "matrix pricing"
or just "pricing".
Two drivers to growth of this type
Increasing complexity
System capabilities
Commodity - correct answer <<<<<💕💕💕✔✔Products that have very little measurable difference
between suppliers.
Complete Solutions
Cash Flow - correct answer <<<<<💕💕💕✔✔Cash in bank > purchased inventory > sold inventory
> accounts receivable > cash in bank
List Price - correct answer <<<<<💕💕💕✔✔The retail price listed
selling price - correct answer <<<<<💕💕💕✔✔list price - trade discounts
Net price - correct answer <<<<<💕💕💕✔✔= selling price - allowable discounts (cash discounts)
Net Sale
Cost of Good Sold (COGS) - correct answer <<<<<💕💕💕✔✔= Cost of Merchandise + Freight from
Manufacturer
Trade Discounts - correct answer <<<<<💕💕💕✔✔specify term of sale and change of price with
how they see fit.
Cash Discounts - correct answer <<<<<💕💕💕✔✔given to encourage buyers to promote payment
promptly.
Special Orders - correct answer <<<<<💕💕💕✔✔instructions given by the buyer on how to deliver
or manufacture the order.
Minimum Order vs. Freight Allowed - correct 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 - correct answer <<<<<💕💕💕✔✔request for payment from the insurance company to
cover financial losses.
Returns - correct answer <<<<<💕💕💕✔✔goods returned to the business that sold them
Operating Expense (OE) - correct answer <<<<<💕💕💕✔✔all costs needed to provide necessary
services.
SG&A - correct answer <<<<<💕💕💕✔✔Selling, General and Administrative Expense
EBITDA: Earnings before interest, Taxes, depreciation, and amortization - correct answer
<<<<<💕💕💕✔✔= Margin - OE - SG&A
EBIT - correct answer <<<<<💕💕💕✔✔EBITDA - Depreciation and Amortization
Interest Expense - correct answer <<<<<💕💕💕✔✔Not part of operating cost
NPBT - correct answer <<<<<💕💕💕✔✔Net profit before taxes
NPAT - correct answer <<<<<💕💕💕✔✔Net profit after taxes
Accounts payable - correct answer <<<<<💕💕💕✔✔Money the distributor owes the manufacturer
Accounts Receivable - correct answer <<<<<💕💕💕✔✔money the customer owes us
Days Sales Outstanding - correct answer <<<<<💕💕💕✔✔Receivable Dollars * (365/sales)
, Inventory - correct answer <<<<<💕💕💕✔✔What we have on hand to sell
Inventory Turn - correct answer <<<<<💕💕💕✔✔= (COGS from inventory / Average Warehouse
Inventory)
Gross Margin Return on Inventory Investment (GMROII) - correct answer <<<<<💕💕💕✔✔=
(Gross Margin Dollars Earned on Warehouse Sales/ Average Warehouse inventory)
COGS - correct answer <<<<<💕💕💕✔✔= Cost of Merchandise + Freight from Manufacturer
FOB Destination - correct answer <<<<<💕💕💕✔✔manufacturer pays for the freight
FOB Shipping Point - correct answer <<<<<💕💕💕✔✔distributor pays for the freight
Cost of Merchandise - correct answer <<<<<💕💕💕✔✔Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
Trade Discounts - correct answer <<<<<💕💕💕✔✔Usually a discount off of a published list price
or other published price.
Trade Pricing - correct answer <<<<<💕💕💕✔✔Also know as other names such as "matrix pricing"
or just "pricing".
Two drivers to growth of this type
Increasing complexity
System capabilities
Commodity - correct answer <<<<<💕💕💕✔✔Products that have very little measurable difference
between suppliers.
