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Business Chapter 31
Enquiry, Quotation, Order, Delivery Note
| Question | Answer |
|---|---|
| Why do businesses sell goods on credit? (3 reasons) | To increase sales/profit, to allow customers to buy in bulk and to compete with competitors |
| Give the order of the business documents. | Letter of enquiry, quotation, order, delivery docket, invoice, debit/credit note, statement of account, payment, receipt |
| What information is included on a letter of enquiry? (2 points) | Price and terms and conditions |
| List the steps for dealing with an outgoing quotation. | Check all info is correct, check goods are available, check name and address of buyer, make a copy and file it |
| List the steps for dealing with an incoming quotation. | Compare with other quotations (for best offer), compare with enquiry, check all terms and dates, file a copy of each quotation |
| Explain the payment term credit offered. | Buyer can get goods now and pay in 60 days |
| Explain the payment term CWO. | Cash With Order, buyer must pay cash when ordering the goods |
| Explain the payment term COD. | Cash On Delivery, buyer must pay cash on delivery of the goods. |
| Explain the discount term trade discount and give 3 reasons why it might be given. | A reduction in price , usually given if the buyer : buys in bulk, buyer and seller know each other or goods are slightly out of date |
| Explain the term obsolete goods. | Goods that are slightly out of date |
| Explain the discount term cash discount. | The seller offers money off if the buyer pays in cash within a short time. |
| Explain the transport term carriage. | Transport costs. |
| Explain the transport term carriage paid. | Seller will pay for transport costs. |
| Explain the transport term ex works. | Buyer must pay for delivery costs. |
| Explain the transport term FOR. | Free On Rail, seller pays for delivery to the nearest railway station to the buyer. |
| Explain the transport term FOB. | Free On Board, seller pays for delivery to the nearest shipping port to the buyer. |
| Why is it best to send a written order form? (2 reasons) | To avoid mistakes and have a copy for filing. |
| List the steps for dealing with an incoming order | Date stamp when received, get goods ready for delivery and compare to order, send to the accounts dept. where invoice and delivery docket prepared, file the order |
| What is a credit rating? | A buyers ability to pay for goods purchased on credit. |
| Explain how to check a customers credit rating using a trade reference. | Check with other suppliers whether the costumer has paid them back in the past. |
| Explain how to check a customers credit rating using a bank reference. | Ask the customer to get a reference from their bank, stating that they are in good standing with the bank. |
| Explain how to check a customers credit rating using the credit bureau. | For a fee, this agency will check for bad debts. |
| Explain how to check a customers credit rating using Stubb's Gazette. | A publication which lists court judgements against any company with bad debts. |
| What is the delivery docket proof of and how many copies of it are made (for who?) | It's proof of delivery and there are 3 copies , one for the buyer, seller and the driver. |
| What should be done on arrival of goods and delivery docket? | Check the correct quantity has been delivered and the goods are in good condition. |
| What should you write if you do not have time to check the goods? | 'Signed but not examined'. |
Created by:
stellamcb
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