The Following Terms Appeared on an Invoice Dated May 20

question 85

Multiple Choice

The following terms appeared on an invoice dated May 20 which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on May 30 (10 days after the products were delivered) , how much should he have paid?

• A) $1,900
• B) $1,800
• C) $2,000
• D) $1,960
• E) $2,040

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Definitions:

Experience

The knowledge or mastery of an event or subject gained through involvement in or exposure to it.

Productivity

The measure of the efficiency of production often calculated as the ratio of outputs produced to inputs used in the production process.

Constant Returns To Scale

Constant returns to scale occur when a proportional increase in all inputs leads to an equal proportional increase in output, implying efficiency in production.

Human Capital

Abilities, insights, and practice held by a person or community, seen through the lens of their contribution or expenditure to a corporation or state.