IDIS 240 Exam 2 Latest Update 2026 MOST TESTED Questions
with Correct Answers Guaranteed Success
NPBT - VERIFIED ANSWER✅ Net profit before tax=EBIT- Interest
NPAT - VERIFIED ANSWER✅ Net profit after tax=NPBT- taxes
SGA - VERIFIED ANSWER✅ Selling General and Administrative expenses
EBITDA - VERIFIED ANSWER✅ Earnings before interest, taxes depreciation and
amortization
GMROII - VERIFIED ANSWER✅ Gross margin return on inventory investment
EBIT - VERIFIED ANSWER✅ Earnings before interest taxes
UOM - VERIFIED ANSWER✅ Unit of measure
OEM - VERIFIED ANSWER✅ Original equipment manufacturer
MRO - VERIFIED ANSWER✅ Maintenance repair and operations
,Agent - VERIFIED ANSWER✅ Very similar to a manufacturing sale representative that
usually represents multiple companies. May call on distributors, end users, specifiers, and
manufacturers. Rarely stock but never own products.
List Price - VERIFIED ANSWER✅ Listen price of the product
Selling Price - VERIFIED ANSWER✅ the amount that appears on the invoice (amount paid by
customer)
Selling price= list price- trade discounts
Net Price - VERIFIED ANSWER✅ Customer doesn't pay the full selling price and a cash
discount is announced to pay the as soon as possible
Net price= selling price- cash discounts
Net Sale - VERIFIED ANSWER✅ Actual amount received by the distributor after all
adjustments are made to the net price.
3 Types of adjustments - VERIFIED ANSWER✅ 1. Substitutions
2. Different quality or specifications than those that are ordered
3. Damaged or returned goods by the customer
Downward Adjustment - VERIFIED ANSWER✅ Means that the customer pays lesser than
that billed on the original invoice
,Net Sale Calculation - VERIFIED ANSWER✅ Net Sale= Net Price- Adjustments
If no sale is made Net Sale = - VERIFIED ANSWER✅ Net Price
If no cash discounts are made Net Price - VERIFIED ANSWER✅ Selling Price
If no trade discounts are given then Selling Price = - VERIFIED ANSWER✅ List Price
COGS - VERIFIED ANSWER✅ Cost of goods sold= Cost of merchandise + freight charges
paid by retailer
Freight - VERIFIED ANSWER✅ Cost to move and item from manufacturer to customer or
distributor
What specifies who is responsible for the freight payment - VERIFIED ANSWER✅ Terms of
Sale
Who usually pays for the freight if its in large quantities and uses the least expensive
transportation system - VERIFIED ANSWER✅ Manufacturer
Prepay and Bill - VERIFIED ANSWER✅ Manufacturer pays the freight but charges for it in
the bill
, FOB - VERIFIED ANSWER✅ Free of Board
FOB Shipping point Ex. - VERIFIED ANSWER✅ The manufacture puts merchandise on truck
after which it becomes the responsibility of the buyer
FOB Destination - VERIFIED ANSWER✅ The manufacturer would put the merchandise on the
truck and pays for it to be delivered
Trade Discounts - VERIFIED ANSWER✅ 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 - VERIFIED ANSWER✅ Pricing methodology that involves negotiating the
actual price that will be paid as opposed to "list price- trade discounts"
"Max Pricing"
Cash discounts - VERIFIED ANSWER✅ Usually offered by the manufacturer to encourage
early payments
Special Order - VERIFIED ANSWER✅ 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
with Correct Answers Guaranteed Success
NPBT - VERIFIED ANSWER✅ Net profit before tax=EBIT- Interest
NPAT - VERIFIED ANSWER✅ Net profit after tax=NPBT- taxes
SGA - VERIFIED ANSWER✅ Selling General and Administrative expenses
EBITDA - VERIFIED ANSWER✅ Earnings before interest, taxes depreciation and
amortization
GMROII - VERIFIED ANSWER✅ Gross margin return on inventory investment
EBIT - VERIFIED ANSWER✅ Earnings before interest taxes
UOM - VERIFIED ANSWER✅ Unit of measure
OEM - VERIFIED ANSWER✅ Original equipment manufacturer
MRO - VERIFIED ANSWER✅ Maintenance repair and operations
,Agent - VERIFIED ANSWER✅ Very similar to a manufacturing sale representative that
usually represents multiple companies. May call on distributors, end users, specifiers, and
manufacturers. Rarely stock but never own products.
List Price - VERIFIED ANSWER✅ Listen price of the product
Selling Price - VERIFIED ANSWER✅ the amount that appears on the invoice (amount paid by
customer)
Selling price= list price- trade discounts
Net Price - VERIFIED ANSWER✅ Customer doesn't pay the full selling price and a cash
discount is announced to pay the as soon as possible
Net price= selling price- cash discounts
Net Sale - VERIFIED ANSWER✅ Actual amount received by the distributor after all
adjustments are made to the net price.
3 Types of adjustments - VERIFIED ANSWER✅ 1. Substitutions
2. Different quality or specifications than those that are ordered
3. Damaged or returned goods by the customer
Downward Adjustment - VERIFIED ANSWER✅ Means that the customer pays lesser than
that billed on the original invoice
,Net Sale Calculation - VERIFIED ANSWER✅ Net Sale= Net Price- Adjustments
If no sale is made Net Sale = - VERIFIED ANSWER✅ Net Price
If no cash discounts are made Net Price - VERIFIED ANSWER✅ Selling Price
If no trade discounts are given then Selling Price = - VERIFIED ANSWER✅ List Price
COGS - VERIFIED ANSWER✅ Cost of goods sold= Cost of merchandise + freight charges
paid by retailer
Freight - VERIFIED ANSWER✅ Cost to move and item from manufacturer to customer or
distributor
What specifies who is responsible for the freight payment - VERIFIED ANSWER✅ Terms of
Sale
Who usually pays for the freight if its in large quantities and uses the least expensive
transportation system - VERIFIED ANSWER✅ Manufacturer
Prepay and Bill - VERIFIED ANSWER✅ Manufacturer pays the freight but charges for it in
the bill
, FOB - VERIFIED ANSWER✅ Free of Board
FOB Shipping point Ex. - VERIFIED ANSWER✅ The manufacture puts merchandise on truck
after which it becomes the responsibility of the buyer
FOB Destination - VERIFIED ANSWER✅ The manufacturer would put the merchandise on the
truck and pays for it to be delivered
Trade Discounts - VERIFIED ANSWER✅ 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 - VERIFIED ANSWER✅ Pricing methodology that involves negotiating the
actual price that will be paid as opposed to "list price- trade discounts"
"Max Pricing"
Cash discounts - VERIFIED ANSWER✅ Usually offered by the manufacturer to encourage
early payments
Special Order - VERIFIED ANSWER✅ 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
