What Are the Principles and Standards That Guide Our Behavior

question 19

Multiple Choice

What are the principles and standards that guide our behavior toward other people?

• A) Intellectual property
• B) Copyright
• C) Pirated software
• D) Ethics

Identify the different forms of discounts available (e.g., quantity, seasonal, trade, and cash discounts) and their purposes.

Understand the concept of incremental analysis in making marketing decisions.

Comprehend the role of trade discounts in the distribution channel and their effect on pricing strategies.

Recognize the use of cash discounts as an incentive for early payment by retailers to manufacturers.

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Definitions:

Cost of Goods Sold

Costs directly incurred in the manufacture of goods a company sells.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxes, and interest expenses.

Beginning Inventory

The worth of merchandise ready for purchase at the beginning of a financial period, prior to any acquisitions being made or deductions for sales.