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DSST Business Math

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The wholesale cost of an item (cost of goods - or COG)






2. The cost of moving from the vendor's warehouse (loading dock) to the retail warehouse or store (loading dock) - may also include insurance to cover the merchandise while in transit






3. S=X+nrX Where: X=the original sum invested r=the interest rate (as a proportion - e.g. 0.05=5%) n=the number of periods S=the sum invested after n periods (capital + interest) - e.g. invest $1000 @ 10% simple interest for 5 years = 1000+(50.101000)






4. Convert 20 to a percent






5. $ Cost x (100 + Mark-up %) / 100






6. Convert 1.25 to a percent






7. Direct labor - factory overhead - merchandise inventory - packaging - raw material






8. Two equivalent ratios joined by an equal sign.






9. cost of an item expressed per unit of measure or count.






10. accounts receivable/ average daily sales






11. IRR=1 + [(NPV1/NPV1-NPV2)(2-1)]% Where: 1=one interest rate 2=the other NPV1=the NPV at rate 1 NPV2=the NPV at rate 2 (NPV = Net Present Value)






12. Divide the result by 1-the decrease proportion - eg) X=16/(1-0.25)=21.33 - 16 is a 25% decrease of 21.33






13. You should never take out more than a _ year mortgage.






14. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring






15. Gross Margin/ Average Inventory Cost






16. total annual sales/365






17. Convert 65% to a decimal






18. Start with list price - List price: $6400 x 25% - x 10% - x10% % - Taken one after another(subtract)






19. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM






20. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$






21. What happens when your sales are higher than your expenses - etc.






22. Actual retail sales; the retail price at which one tiem is sold is combined with the retail prices of all the items that are sold to become the net sales amount.






23. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory






24. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods






25. What does percent mean?






26. Net Sales / Average Retail Value of Inventory






27. If freight is to be paid by the seller - the shipping terms are...






28. Convert 3 to a percent






29. $ Cost/ (100%-markup%)






30. To take advantage of the 6% cash discount - a retailer made a $2 -000 partial payment during the discount period. How much was the retailer credited for the $2 -000 partial payment?






31. X=S*[1/(1+r)^n] Where: S=the sum to be received after n time periods X=the present value of that sum r=the rate of return (as a proportion) n=the number of time periods - r - rate - is sometimes called cost of capital






32. Convert 10/11 to a percent






33. Assets - cost of goods sold - expenses






34. Inside numbers in a ratio.






35. Convert 41/100 to a percent






36. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30






37. Cash on delivery; this dating is used when the vendor does not know the retailer or the retailer does not have a strong line of credit






38. % of 90 days same as cash convert to payments.






39. Convert 1/4 to a percent






40. Net Sales for period/ Avg Stock for period






41. When refunds or retail price reductions are given to customers - these activities reduce the value of this (also known as initial sales). formula: GS = NS + RED; GS$ = NS$ X GS%






42. $ RETAIL X (100 - GM %) / 100






43. An electronics store is having a 40 percent off sale. Robert has been saving to purchase a stereo system that was originally priced at $420. If Robert purchases the system during the sale - what will be the cost?






44. Formula: GM = NS - COG; GM$ = NS$ X GM%






45. After 4 years - $5 -000 will grow to how much if it earns 10% interest?






46. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit






47. Outside numbers in a ratio.






48. A/b






49. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)






50. 1. develop a vision statement for the company - 2. scan the internal and external environments - 3. determine issues critical to the company - 4. select the problem to be solved - 5. determine the specific strategy to achieve the solution - 6. identi