| A | B |
|---|
| Reduction in price | markdown |
| Retail price minus cost | markup |
| assets = liabilities + ? | owners equity |
| Formula for gross margin | income (sales) - cost of goods sold |
| Example consumer/retail credit | Kohls charge |
| Largest single factor in establishing price | cost of goods sold |
| Process of measuring flow of money | financial management |
| statement revnues and expenses | income statement |
| gain form sale of goods | profit |
| example of business credit | Coke selling to Northwest |
| Bargaining for price is (F) | flexible pricing |
| Long term debt is > months | twelve months |
| Low pricing for an event | promotional pricing |
| Example of fixed assets | building, equipment |
| Cash flow planning estimates | cash needed |
| cost + markup = | retail price |
| Sales = cost + expenses | breakeven point |
| Promise to pay at later date | credit |
| Paid out to operate | expenses |
| 4 c's = ability to payback | capacity |
| Reason retailers extend credit | customers shop and buy more |
| 4 c's look at payment history | character |
| prohibits creditors to discriminate | Equal credit opportunity act |
