F. Ernest Jerome
| Cash discount | A discount allowed for a payment within the discount period.
(See page 140.)
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| Credit period | The time period granted to a customer for paying an invoice.
(See page 140.)
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| Discount period | The time period within which a payment on an invoice qualifies for a prompt payment discount.
(See page 140.)
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| Equivalent discount rate | The single discount rate that gives the same net price as the combined effect of multiple discounts.
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| Gross profit | The difference between the selling price and the unit cost of an item of merchandise. (Also called markup.)
(See page 145.)
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| Gross profit margin | The gross profit expressed as a percentage of the selling price.
(See page 146.)
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| List price | The price quoted by a supplier of a product before any trade discounts.
(See page 132.)
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| Markdown | The amount that the price of an item is reduced.
(See page 154.)
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| Markup | The difference between the selling price and the unit cost of an item of merchandise. (Also called gross profit.)
(See page 145.)
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| Net price | The price paid after the deduction of trade discounts.
(See page 133.)
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| Ordinary dating | Terms of payment where the credit and discount periods start on the date of the invoice.
(See page 140.)
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| Partial payment | Any payment that is smaller than the initial amount required to fully settle an invoice.
(See page 142.)
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| Rate of markdown | The markdown expressed as a percentage of the regular price.
(See page 154.)
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| Rate of markup | The markup expressed as a percentage of the cost of the merchandise.
(See page 146.)
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| Terms of payment | The specifications on an invoice of the length of the credit period, any cash discount offered and the corresponding discount period, and the date on which the credit and discount periods start.
(See page 140.)
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| Trade discount | A discount granted by the supplier to a purchaser of goods for resale.
(See page 133.)
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2003 McGraw-Hill Higher Education