What is the net price and trade discount

Q: what is the effect of purchase supples on accout on current ratio?

A: Current ratio is the one that shows the current assets as numerator and current liabilities…

Q: What Is Quantity Discount Analysis Illustrated?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Define Discount Rate.

A: A discount rate is rate which is used to bring future value of cash flow to the present value.It is…

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: Explain the law of one price in the perspective of the following: a) Purchasing power parity b)…

A: Law of One Price: It is stated in the law of one price that, in the absence of friction between…

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: Compare the book value with the market price?

A: Book value is the amount of acquisition cost of asset, less accumulated depreciation as on a…

Q: Define discount on forward rate

A: Answer: For a purchase, a forward rate is a contract price that will be fulfilled at a date…

Q: What is Dollar-Value LIFO Retail Method ?

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

Q: Net price discount

A: The net price is the price paid for an item in actuality. It is the actual amount paid by the…

Q: what is price elasticity

A: Explaination:-   The price elasticity of desire is an economic statistic that measures the idea of…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: Explain the argument for and against the use of net price method with respect to purchase discounts?

A: The Net Price Method (NPM) provides information about the purchase discounts lost by the company and…

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…

A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…

Q: What is the discounted-payback method?

A: Payback period states the number of years that is taken by the project to recover the investment of…

Q: Compare standard quantity discounts to cumulative quantity discounts.

A: Cumulative Quantities Discount (CQD) is a system intended to recompense consumers after a definite…

Q: What is meant by purchasing power parity?

A: Purchasing power parity It is a measuring of the prices in various other countries that utilizes the…

Q: What discount rate is used in a lessor’s NPV analysis?

A: Weighted average cost of capital is used as discount rate in Lessor's NPV analysis.

Q: Explain purchasing power parity

A: The formula to compute purchasing power parity:

Q: What is Inflation Premium?

A: Inflation premium: An inflation premium is the piece of the common interest rate coming about…

Q: Define the term Discounted-Payback Period?

A: The payback period states the number of years that is taken by the project to recover the investment…

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is mark-to-market?

A: Market to market is an equipment that can become different the value on either side of balance…

Q: What are the features of the discounted payback period

A: DPP is the total time taken for the initial amount to equal to be the amount of discounted value of…

Q: What is the definition net cost of purchases?

A:

Q: how is the selling price computed

A: Formula: Selling price=Cost100%-Gross profit ratio

Q: Compute the goodwil (gain on bargain purchase)

A: Goodwill refers to the extra amount of consideration paid over the fair value of the net assets of…

Q: What is the discounting process?

A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…

Q: What is the list price

A: The amount listed on a product and the price at which a product is available for sale is known as…

Q: The discount rate can also be referred to as the?

A:

Q: What is the formulae used to find markup price?

A: Markup price is the price that the player comes up with after adding the mark up to the cost price…

Q: What is inflation premium (IP)?

A: Inflation premium is considered to be a very popular concept as this is considered to be a major…

Q: What is the discounted payback period?

A: Discounted payback period is period for which present value of cash flow is equivalent to initial…

Q: Briefly explain Purchasing Power Parity?

A: Purchasing Power Parity (PPP) is a theory of exchange rate determination. Purchasing power parity is…

Q: Explain price/EBITDA ratio

A: The EV/EBITDA ratio compares a company's enterprise value to its earnings before interest, taxes,…

Q: what is the cost of sales?

A: Cost of sales are the cost incurred for producing the goods which is sold. The concept related to…

Q: Define Selling profit.

A: Net income: Net income is the excess amount of revenue that arises after deducting all the expenses…

Q: How is the price of an item established in a target pricing contract?

A: Target pricing is the approach which is innovative and used at the initial stage of the new…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…

Q: What is the difference between order discounts and volume discounts?

A: there are different types of discount from the cells that customer can earn close discount are…