Key Terms Used In Selling In Business Math Explained -Cost, Selling Price, Markup Operating Expenses

In this video we discuss some key terms used in selling in business math, such as cost, selling price and markup. We go through a general definition for each of these key terms Transcript/notes In business there are several terms used in selling that are important to understand. The first term is cost. Cost is the amount paid, after any trade or cash discounts, to a supplier or manufacturer. Shipping and insurance charges are included in the cost. So, if a retailer purchases jeans from a manufacturer for $32, after any discounts, shipping and insurance, that is the cost. Selling price is the next term, and this is the price the merchandise is offered for sale to the public. If the retailer sells the jeans it bought to the public for $52, then $52 is the selling price. Markup is the next term, and margin or gross profit is often interchanged with the term markup. Markup is difference between the cost and the selling price. In our jeans example, the markup would be $52 minus $32, or $20. Operating expenses, sometimes referred to as overhead is the next term. Operating expenses are the expenses of operating a business, such as, rent, utilities, insurance, marketing, wages and salaries, just to name a few. Net profit is the next term. Net profit is the profit, or amount remaining after operating expenses and the costs of goods has been paid. I will be using these terms in the next several business math videos that I post. Chapters/Timestamps 0:00 Cost in business math 0:25 Selling price in business math 0:38 Markup in business math 0:53 Operating expenses in business math 1:08 Net profit in business math

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