1 Exampromax - Stuvia US 2025/2026
IDIS 240 Test 2 Evans F2019 Questions and
Answers (100% Correct Answers) Already
Graded A+
List Price
Ans: Listed price of the product. Manufacturers sell from a nationally advertised
price. As there is a fluctuation in cost of raw materials or market condition, a
discount is offered, but this discount is seldom reflected on the list price.
Selling Price
Ans: Amount paid by customer that appears on invoice.
Selling price = list price - trade discounts
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Exampromax - Stuvia US
Net Price
Ans: Customer doesn't pay the full price and a cash discount is announced to pay
the bill as soon as possible.
Net Price = Selling price - Cash discounts
Net Sale
Ans: Actual amount received by the distributor after all adjustments are made to
the net price.
Net Sale = Net Price - Adjustments
Cost of Goods sold (COGS)
Ans: COGS = cost of merchandise + Freight charges paid by the retailer
Freight
Ans: • Cost to move an item from where it is manufactured to either the
distributor's location or the customer's location
• Terms of sale specifies who is responsible for payment
• Large quantities and Least expensive transportation system - manufacturer pays
the freight
• Prepay and bill- manufacturer pays the freight but charges for it in the bill
Trade Discounts
, 2 Exampromax - Stuvia US 2025/2026
Ans: • Specified in "term of sale".
• Usually offered by the manufacturer owing to fluctuations in the market
conditions like the raw material cost
• Trade discounts may be extended further to customers by the distributor to meet
local, competitive market conditions
Trade Pricing
Ans: • Pricing methodology that involves simply negotiating the actual price that
will be paid as opposed to "list price- trade discounts".
• Factors influencing are the same as those influencing trade discounts
Cash Discounts
Ans: • Specified in "term of sale".
• Usually offered by the manufacturer to encourage early payments (no difference
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between cash or check or mode of payment)
Exampromax - Stuvia US
Special Orders
Ans: • Usual products with some modification in design, finish, materials or
packing
• Cancellation charges are usually included in terms of sale. Conditions are
clearly stated as to who pays for the order if the order is cancelled.
Minimum Order
Ans: Manufacturer specifies the minimum allowable order as the cost of ordering
is high. Distributors collectively buy material from the manufacturer for small
orders of various customers.
Freight allowed
Ans: The terms of sale should indicate the amount that must be purchased to
have the manufacturer pay the cost of freight for standard shipment.
Claims
Ans: • Terms of sale should indicate the time limit, address of contact to claim
for billing or shipping errors.
• Damages must be reported clearly specifying the problem before signing the
shipment
Returns
IDIS 240 Test 2 Evans F2019 Questions and
Answers (100% Correct Answers) Already
Graded A+
List Price
Ans: Listed price of the product. Manufacturers sell from a nationally advertised
price. As there is a fluctuation in cost of raw materials or market condition, a
discount is offered, but this discount is seldom reflected on the list price.
Selling Price
Ans: Amount paid by customer that appears on invoice.
Selling price = list price - trade discounts
© 2025 Assignment Expert
Exampromax - Stuvia US
Net Price
Ans: Customer doesn't pay the full price and a cash discount is announced to pay
the bill as soon as possible.
Net Price = Selling price - Cash discounts
Net Sale
Ans: Actual amount received by the distributor after all adjustments are made to
the net price.
Net Sale = Net Price - Adjustments
Cost of Goods sold (COGS)
Ans: COGS = cost of merchandise + Freight charges paid by the retailer
Freight
Ans: • Cost to move an item from where it is manufactured to either the
distributor's location or the customer's location
• Terms of sale specifies who is responsible for payment
• Large quantities and Least expensive transportation system - manufacturer pays
the freight
• Prepay and bill- manufacturer pays the freight but charges for it in the bill
Trade Discounts
, 2 Exampromax - Stuvia US 2025/2026
Ans: • Specified in "term of sale".
• Usually offered by the manufacturer owing to fluctuations in the market
conditions like the raw material cost
• Trade discounts may be extended further to customers by the distributor to meet
local, competitive market conditions
Trade Pricing
Ans: • Pricing methodology that involves simply negotiating the actual price that
will be paid as opposed to "list price- trade discounts".
• Factors influencing are the same as those influencing trade discounts
Cash Discounts
Ans: • Specified in "term of sale".
• Usually offered by the manufacturer to encourage early payments (no difference
© 2025 Assignment Expert
between cash or check or mode of payment)
Exampromax - Stuvia US
Special Orders
Ans: • Usual products with some modification in design, finish, materials or
packing
• Cancellation charges are usually included in terms of sale. Conditions are
clearly stated as to who pays for the order if the order is cancelled.
Minimum Order
Ans: Manufacturer specifies the minimum allowable order as the cost of ordering
is high. Distributors collectively buy material from the manufacturer for small
orders of various customers.
Freight allowed
Ans: The terms of sale should indicate the amount that must be purchased to
have the manufacturer pay the cost of freight for standard shipment.
Claims
Ans: • Terms of sale should indicate the time limit, address of contact to claim
for billing or shipping errors.
• Damages must be reported clearly specifying the problem before signing the
shipment
Returns
