IDIS 240 VESTAL STUDY GUIDE 2026/2027 QUESTIONS
AND SOLUTIONS RATED A+
✔✔If no cash discounts are made Net Price - ✔✔Selling Price
✔✔If no trade discounts are given then Selling Price = - ✔✔List Price
✔✔COGS - ✔✔Cost of goods sold= Cost of merchandise + freight charges paid by
retailer
✔✔Freight - ✔✔Cost to move and item from manufacturer to customer or distributor
✔✔What specifies who is responsible for the freight payment - ✔✔Terms of Sale
✔✔Who usually pays for the freight if its in large quantities and uses the least expensive
transportation system - ✔✔Manufacturer
✔✔Prepay and Bill - ✔✔Manufacturer pays the freight but charges for it in the bill
✔✔FOB - ✔✔Free of Board
✔✔FOB Shipping point Ex. - ✔✔The manufacture puts merchandise on truck after
which it becomes the responsibility of the buyer
✔✔FOB Destination - ✔✔The manufacturer would put the merchandise on the truck and
pays for it to be delivered
✔✔Trade Discounts - ✔✔Usually offered by the manufacturer owing to fluctuations in
the market conditions life the raw material cost
Trade discounts may be extended further to customers by the distributor to meet local,
competitive market conditions
✔✔Trade Pricing - ✔✔Pricing methodology that involves negotiating the actual price
that will be paid as opposed to "list price- trade discounts"
"Max Pricing"
✔✔Cash discounts - ✔✔Usually offered by the manufacturer to encourage early
payments
✔✔Special Order - ✔✔Usually products with some modification in design, finish,
materials, or packaging. Cancelation 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 - ✔✔Manufacturer specifies the minimal allowable order
AND SOLUTIONS RATED A+
✔✔If no cash discounts are made Net Price - ✔✔Selling Price
✔✔If no trade discounts are given then Selling Price = - ✔✔List Price
✔✔COGS - ✔✔Cost of goods sold= Cost of merchandise + freight charges paid by
retailer
✔✔Freight - ✔✔Cost to move and item from manufacturer to customer or distributor
✔✔What specifies who is responsible for the freight payment - ✔✔Terms of Sale
✔✔Who usually pays for the freight if its in large quantities and uses the least expensive
transportation system - ✔✔Manufacturer
✔✔Prepay and Bill - ✔✔Manufacturer pays the freight but charges for it in the bill
✔✔FOB - ✔✔Free of Board
✔✔FOB Shipping point Ex. - ✔✔The manufacture puts merchandise on truck after
which it becomes the responsibility of the buyer
✔✔FOB Destination - ✔✔The manufacturer would put the merchandise on the truck and
pays for it to be delivered
✔✔Trade Discounts - ✔✔Usually offered by the manufacturer owing to fluctuations in
the market conditions life the raw material cost
Trade discounts may be extended further to customers by the distributor to meet local,
competitive market conditions
✔✔Trade Pricing - ✔✔Pricing methodology that involves negotiating the actual price
that will be paid as opposed to "list price- trade discounts"
"Max Pricing"
✔✔Cash discounts - ✔✔Usually offered by the manufacturer to encourage early
payments
✔✔Special Order - ✔✔Usually products with some modification in design, finish,
materials, or packaging. Cancelation 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 - ✔✔Manufacturer specifies the minimal allowable order
