Business Math-Markup – Flashcards
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the actual amount paid for a product, as opposed to its selling price, and which can include expenses such as freight charges and taxes
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cost
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what a product actually sells for in the store also called retail price
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selling price
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the difference between the cost of a product and the selling price when the selling price is higher
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markup
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the amount of money a supplier makes on a product when its sold for more than cost
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gross profit
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any money left after expenses have been deducted from gross profit, also called net income
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net profit
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the markup on an item expressed as a percent of its selling price
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markup rate
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the costs of running a business, such as salaries, rent, utilities and taxes. also called overhead
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operating expenses
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the net profit on an item expressed as a percent of the selling price
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net profit rate
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he difference between the regular selling price of an item and its sale price
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Markdown
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the discount on an item expressed as a percent of its regular selling price, such as 20%
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markdown rate
