Ch. 22 Test Review #4: Question Preview (ID: 14145)


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Amount by which the original selling price is reduced before sale.
a) Selling price b) Cash discount c) Markdown d) Markup
Reduction in price given for paying by a certain date.
a) Cash discount b) Markdown c) Seasonal discount d) List price
Advertising that violates the law.
a) False advertising b) Full disclosure c) Corrective advertising d) Turnover
Difference between selling price and all costs and expenses.
a) Margin b) List price c) Markup d) Net profit
Advertising designed to change a false impression left by earlier misleading information.
a) False advertising b) Full disclosure c) Corrective advertising d) Advertising
Providing all information that allows consumers to make an informed buying decision.
a) Full disclosure b) Turnover c) Corrective advertising d) Advertising
Amount added to the cost of goods sold to calculate a selling price.
a) Margin b) Markup c) Operating expenses d) Net profit
Difference between selling price and cost of goods sold.
a) Margin b) Markdown c) Net profit d) List price
Price reduction given to channel partners in exchange for additional services.
a) Seasonal discount b) Cash discount c) Trade discount d) Quantity discount
Cost to produce a product or buy it for resale.
a) List price b) Markup c) Full disclosure d) Cost of goods sold
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