WEEK 7: CONCEPT OF BUYING & SELLING

Question 1

is the price that a company or store has to pay for the goods that is going to sell

ex. raw material, ingredients

Answer 1

COST PRICE

Question 2

it is the price that has to be spent to produce goods or services before any profit is added

Answer 2

COST PRICE

Question 3

the price unit incurred relative to the production and sale of a commodity

Answer 3

OPERATING COST

Question 4

the price at which the commodity is sold per unit

Answer 4

SELLING PRICE

Question 5

money earned after the cost price and the operating cost are accounted for after the sale of a commodity

Answer 5

PROFIT

Question 6

it is the discounted price usually offered if the store dispose of its perishable items and old stocks.

if there’s damage in the product, wants to compete in to other product or other store

Answer 6

SALE PRICE

Question 7

having an equal cost and income

no profit at all

Answer 7

BREAK-EVEN

Question 8

is an amount added to the cost price to determine the selling price

usually used to cover operating cost and provide profit

Answer 8

MARK-UP

Question 9

a temporary mark-up on a certain product to take advantage of the high demand during peak season or special occasions

Answer 9

MARK-ON

Question 10

• is a devaluation of a product
• selling an item with a lower price because it is not selling

Answer 10

MARK-DOWN