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Business Finance
Chapter 6 Cash Purchases
| Term | Definition |
|---|---|
| sales tax | a sales or local tax on the selling price of an item or service you purchase, usually expressed as a percent |
| sales receipt | a proof of purchase that shows the selling price of each item or service purchased, the total selling price of all items purchased, any sales tax, and the total purchase amount |
| total purchase price | the total selling price plus the sales tax |
| unit pricing | a technique that allows shoppers to compare the prices of various items |
| comparison shopping | comparing prices to find the best value |
| coupons | discounts offered by manufacturers, stores, and service establishments in the form of tickets that are redeemed at the time of purchase |
| rebates | discounts given by manufacturers, stores, and service establishments in the form of a refund |
| markdown | the difference between the regular selling price of an item and its sale price, also know as a discount |
| markdown rate | the markdown expressed as a percent of the regular selling price of the item |
| sale price | The regular selling price of an item minus the discount or markdown on the price |
| formula | a mathematical relationship or rule expressed in symbols |
| purchase | acquire (something) by paying for it; buy |
| technique | a way of carrying out a particular task |
| factor | a number or quantity that when multiplied with another produces a given number or expression |
| incentive | a thing that motivates or encourages one to do something |
| promote | further the progress of; support or actively encourage. |
| capable | having the ability, fitness, or quality necessary to do or achieve a specified thing |