How do we arrive at the " Net Delivered Cost of Purchases?" What is an "allowance" and why would a merchant offer your one? Is the allowance a negotiable position for the buyer? Can you negotiate an allowance to your favor and how would you do so?
How do we arrive at the " Net Delivered Cost of Purchases?" What is an "allowance" and why would a merchant offer your one? Is the allowance a negotiable position for the buyer? Can you negotiate an allowance to your favor and how would you do so?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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How do we arrive at the " Net Delivered Cost of Purchases?" What is an "allowance" and why would a merchant offer your one? Is the allowance a negotiable position for the buyer? Can you negotiate an allowance to your favor and how would you do so?
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Step 1
"Net purchases" can be defined as the value of all purchases after deducting all costs. A sales allowance can be defined as a discount or the price reduction imposed by a seller because a problem with a product sold may be due to quality issues or other reasons. Therefore, sales discounts are created after the buyer charges first, but before the buyer pays the seller.
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