| A | B |
|---|
| Operating expenses | debts incurred in the routine operation of a business. |
| Variable expenses | Expenses that change from one month to the next depending on the needs of the business. |
| Fixed expenses | Expenses that remain the same over a specific period of time. |
| Cost of goods sold | the total amount spent to produce or to purchase the goods that are sold. |
| Profit (return) | the money earned from conducting business after all costs and expenses have been paid. |
| Income | Money coming into the business from the sale of goods or services. |
| gross profit (gross income) (margin) | - The difference between the selling price (sale revenue) and the cost of goods sold. |
| Net profit (net income) | The amount left after the total expenses are subtracted from gross profit. |
| Return on investment (ROI) | A calculation that is used to determine the relative profitability of a product. |
| Markdown | A reduction in selling price used to reduce inventory as a result of buying errors, promotional pricing, or sales techniques. |
| Demand- oriented pricing | Pricing based on what consumers are currently willing to pay for a product. |
| Competition-oriented pricing | Prices set on a basis of what competitors charge. |
| Cost-oriented pricing | Pricing based on the cost of the product plus a markup of desired profit. |
| Price lining | A special pricing technique that set a limited number of prices for specific groups or lines or merchandise. |
| Optional product pricing | Pricing for accessories or options sold with the main product. |
| Captive product pricing | Sets the price for a primary product low, but compensates for that low price by pricing the supplies needed to operate that product high. |
| By- product pricing | Sets prices on products production of other products. |
| Bundle pricing | Packaging and selling complementary products along with the primary product at a single price. |
| Geographical pricing | Pricing to include charges necessary to get the product delivered to the customer’s location. |
| International pricing | setting price based on cost, consumers, economic conditions, and monetary exchange rates. |
| Buyer identification pricing | Pricing that offers consideration to buyer segments based on special characteristics of the segment. |
| Product design pricing | Pricing different styles of products due to demand. |
| Purchaser location pricing | Pricing according to where a product is sold and/or the location of the product. |
| Time-of-purchase pricing | Pricing based on peak/non-peak business season. |
| Odd-even pricing | A pricing technique that involves setting prices that all end in either odd or even numbers. |
| Prestige pricing | - A pricing strategy that sets higher-than-average prices to suggest status and high quality to the consumer. |
| Multiple-unit pricing | - Pricing items in multiples. |
| Everyday low prices | Setting low prices on a consistent basis with no intention of raising them or offering discounts in the future. |
| Loss leader pricing | Offering very popular items of merchandise for sale at below-cost prices to increase store traffic. |
| Special event pricing | Offering reduced prices for a short period of time for specific events or promotions. |
| Rebates | Partial refunds provided by the manufacturer to consumers who mail in proof of purchase according to manufacturer guidelines. |
| Coupon | A printed voucher that provides a reduction in the selling price at the time of purchase. |
| Cash discount | - a reduction in price offered to buyers to encourage prompt payment. |
| Quantity discount | a reduction in price offered to the buyer for placing large orders. |
| Trade discount | - A discount allowed by manufactures to wholesalers and retailers. |
| Seasonal discount | A reduction in price offered to buyers willing to buy at a time outside the normal buying season. |
| Price | The dollar value (or its equivalent) placed on a good or service. |
