Ch. 7: Retail Math - Glossary

Question 1

cost

Answer 1

the total amount of money that it takes to get a product to a seller

Question 2

cost of goods sold

Answer 2

includes variable and fixed costs directly linked to the sale, such as material costs, labor, supplier profit, and shipping costs

Question 3

margin

Answer 3

-the amount of you price that is profit
-the amount of money you will make off of a product
-expressed in dollars or percent relative to price

Question 4

markup

Answer 4

a percent or dollar increase in price relative to cost

Question 5

price

Answer 5

amount paid retail for the product by the customer

Question 6

relative pricing

Answer 6

-the price of a commodity such as a good or service in terms of another
-the ratio of two prices

Question 7

wholesaler

Answer 7

a person or company who sells product in bulk to various outlets or retailers, such as restaurants

Question 8

distributor

Answer 8

an entity that supplies goods to business such as grocery stores or other businesses, that in turn sell the goods to consumers