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Discounts and allowances are reductions to a basic price of goods or services.. They can occur anywhere in the distribution channel, modifying either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer ...
Markup is the difference between the selling price and the cost of a good or service. Learn how to calculate markup, profit margin, and markup percentage, and how markup affects aggregate supply and pricing.
Gross margin is the difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage. Learn how to calculate gross margin, how it differs from gross profit, and how it is used in sales and marketing.
AWP is a prescription drug term for the average price of medications at the wholesale level in the US. It is used to determine third-party reimbursement, but it is often inflated by 20% relative to actual market prices.
Invoice price is the actual price that the end-customer retailer pays to the manufacturer or distributor for a product. Learn how to calculate the net purchase cost, the difference between invoice price and trade price, and the accounting methods for recording invoice price.
The current spread accounts for about three-fourths of the retail price for a market basket of foods, according to USDA. The farm value varies for each type of food; for example, in 2004, it accounted for about 35% of the retail cost of eggs, compared to about 19% for fresh fruit and vegetables, and about 6% for cereal and bakery products.
Learn how to measure the monetary value of inventory items for financial statements. Compare different inventory accounting systems, methods and valuation techniques.
Bulk purchasing is the purchase of large quantities of goods at a lower unit price than usual. It can benefit consumers, wholesalers, retailers, and the economy, but also face challenges and controversies in some industries.
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