When You Use a Credit Card at a Store, the Store

question 24

Multiple Choice

When you use a credit card at a store, the store is generally charged a fee ranging from 1.5% to 5%. What is this fee called?

• A) merchant discount fee
• B) merchant back-end charge
• C) merchant rate
• D) discount rate
• E) none of the above

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.

Raw Materials

The basic, unprocessed materials used in manufacturing to produce finished goods.

Work in Process

Work in process (WIP) refers to the materials and labor that are in the production process but have not yet been completed or transformed into finished goods.

Manufacturing Product

The end result of the manufacturing process, which is the production of goods in a factory.