© EVERLY 2025 ALL RIGHTS RESERVED.
IDIS 240 Final Exam – Vestal Exam
Questions And Answers 100% Pass.
Cash Flow - Answer✔Cash in bank > purchased inventory > sold inventory > accounts
receivable > cash in bank
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
1|Page
, © EVERLY 2025 ALL RIGHTS RESERVED.
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
Accounts Receivable - Answer✔money the customer owes us
Days Sales Outstanding - Answer✔Receivable Dollars * (365/sales)
Inventory - Answer✔What we have on hand to sell
Inventory Turn - Answer✔= (COGS from inventory / Average Warehouse Inventory)
Gross Margin Return on Inventory Investment (GMROII) - Answer✔= (Gross Margin Dollars
Earned on Warehouse Sales/ Average Warehouse inventory)
COGS - Answer✔= Cost of Merchandise + Freight from Manufacturer
FOB Destination - Answer✔manufacturer pays for the freight
FOB Shipping Point - Answer✔distributor pays for the freight
Cost of Merchandise - Answer✔Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
Trade Discounts - Answer✔Usually a discount off of a published list price or other published
price.
Trade Pricing - 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 - Answer✔Products that have very little measurable difference between suppliers.
Pure commodities are typically refer to raw materials such as copper, gold, chemicals, etc.
Commoditization - Answer✔Difference between products has narrowed over time. Common
among products that have pure commodities as a large portion of the finished product.
2|Page
IDIS 240 Final Exam – Vestal Exam
Questions And Answers 100% Pass.
Cash Flow - Answer✔Cash in bank > purchased inventory > sold inventory > accounts
receivable > cash in bank
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
1|Page
, © EVERLY 2025 ALL RIGHTS RESERVED.
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
Accounts Receivable - Answer✔money the customer owes us
Days Sales Outstanding - Answer✔Receivable Dollars * (365/sales)
Inventory - Answer✔What we have on hand to sell
Inventory Turn - Answer✔= (COGS from inventory / Average Warehouse Inventory)
Gross Margin Return on Inventory Investment (GMROII) - Answer✔= (Gross Margin Dollars
Earned on Warehouse Sales/ Average Warehouse inventory)
COGS - Answer✔= Cost of Merchandise + Freight from Manufacturer
FOB Destination - Answer✔manufacturer pays for the freight
FOB Shipping Point - Answer✔distributor pays for the freight
Cost of Merchandise - Answer✔Trade Discounts
Trade Pricing
Commodity Pricing
Deviations from the Price of the Merchandise
Trade Discounts - Answer✔Usually a discount off of a published list price or other published
price.
Trade Pricing - 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 - Answer✔Products that have very little measurable difference between suppliers.
Pure commodities are typically refer to raw materials such as copper, gold, chemicals, etc.
Commoditization - Answer✔Difference between products has narrowed over time. Common
among products that have pure commodities as a large portion of the finished product.
2|Page
