If the Cash Discount Terms for a $500 Purchase Are

question 315

Multiple Choice

If the cash discount terms for a $500 purchase are 4/10 net 30, the number 4 refers to

• A) the percentage markup on the product.
• B) the percentage discount if the bill is paid within 10 days.
• C) the percentage increase in price if the bill is not paid within 10 days.
• D) the discount in dollars per unit if the order is paid on time within 30 days.
• E) the penalty in dollars if the bill is not paid within 10 days.

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Definitions:

Arrival Rate

In queueing theory and operations research, the average rate at which entities (customers, jobs, requests) arrive at a service facility or system within a specified period.

Order Fulfillment Centre

A facility specialized in receiving, processing, and shipping customer orders, acting as the bridge between suppliers and customers in supply chains.

Poisson Distribution

A probability distribution that models the number of times an event occurs in a fixed interval of time or space.