The Purpose of the Invoice Price Is to Inform Customers

question 62

Multiple Choice

The purpose of the invoice price is to inform customers of the:

• A)sales tax on the vehicle.
• B)suggested retail price.
• C)sticker price.
• D)charge for optional extras.
• E)dealer's cost.

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Definitions:

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue.

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income, indicating how much tax will be paid on an additional dollar earned.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations.