(First year B.Com Semester II 2025 – Business Mathematics)
EXERCISE
- A) THEORY QUESTIONS:
- Define: (i) Cost price, (ii) Market price, (iii) Selling price.
ANS- (i) Cost price – The total amount paid for purchasing an article, transport charges, octroi etc. is called cost price of that article.
(ii) Market price – The price of an article which is printed in the price list or catalogue so as to ensure that the consumer gets the article at that price is called marked price or list price or catalogue price.
(iii) Selling price – Total amount realised by selling an article is called selling price of that article.
- What is cash discount and trade discount?
ANS- Traders who buy goods in large quantities from manufacturers or wholesalers are generally given an allowance on the list price of the goods. This is known as trade discount.
The discount given by retailer to a purchaser is called cash discount.
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