Assume That the List Price of an Item Is $1,200

question 20

Multiple Choice

Assume that the list price of an item is $1,200 and that the chain of discounts is 40-20-10.How much would a retail buyer pay?

• A) $480.00
• B) $518.40
• C) $576.00
• D) $720.00
• E) $840.60

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Definitions:

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.

Buying Division

A segment within a company responsible for purchasing products, materials, and services required for the company’s operations.

Transferred Item

Goods that are moved from one process, department, or location to another within the same company.