busmath Flashcards
The value added to the original price to attain the selling price
mark up
The decrease from the original price to achieve a lower selling price
mark down
All the money you earn before taxes and other deductions are subtracted
gross income
What a business makes after taxes, deductions, and other expenses are taken out
net income
Percentage that is deducted from the original price
Computed from the original price to derive the new selling price
discount
One-time discount that is given to customers which is deducted to the selling price they are buying
single trade discount
Multiple discounts are applied to the same item in succession
discount series
The net income or net earnings
Can be computed by subtracting the expenses to the revenue
The left-over amount of revenue after the business pays all of its expenses
Earnings that an individual or business takes home after all the costs and expenses are paid
profit
Also known as the “sales;” amount of money that a business receives from its customer by selling products or providing services
Expenses: Amount of money needed by the business to spend to produce its product or perform its services
revenue
It is possible for you to compute a negative profit
Difference between the expenses and the revenue when the expenses is greater than the revenue
Amount of money a business spends and did not return as a revenue
Negative earnings realized when expenses and costs exceed revenues
loss
The total expense and the total revenue are equal
The point where it is neither a profit nor a loss
break even
Number of products needed to be sold to obtain the same amount of money a business spends in producing such products
break even point
The portion of the total amount of the company’s sales that is given to salespersons
The amount they received is based on the commission rate given by the owner of the business
commission
