BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The price of goods that we purchased from the manufacturer
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The price at which merchandise is offered for sale to the customer.
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Original price of the goods paid by the retailer to the manufacturer or supplier
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Amount of payment made by the retailer to the manufacturer after deducting trade and cash discount
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Detailed explanation-1: -The net price of a product or service is the actual price that customers pay for the product or service. It is the final number after trade discounts are subtracted from the list price.
Detailed explanation-2: -Cash discounts refer to a discount that a seller offers to a buyer in return for paying a bill before the maturity of the due date. Trade Discount is a reduction of amount from the list price of the goods, which the trader allows to the customer at a given rate.
Detailed explanation-3: -In simple words, a Trade discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods. It is given as a deduction in the list price or retail price of the quantity sold.
Detailed explanation-4: -Cash Discount-This discount is provided by a seller when a buyer makes prompt payment in cash or equivalent. This discount is provided if the buyer makes the payment within a specified period of time. Due to this reason, this is also called prompt payment discount.