Prentice Hall's One-day MBA In Finance & Accounting - Plot & Excerpts
directly on the dollar amounts of sales, not the quantity of products sold. As total sales revenue (dollars) increases, these expenses increase directly in proportion. In short, one more dollar of sales revenue causes these expenses to increase by a certain amount of cents on the dollar. Most retailers accept national credit cards (Visa, Master-Card, Discover, American Express, Diners Club, etc.). The credit card charge slips are deposited daily with a local participating bank. The bank then discounts the total amount and credits the net balance in the business’s checking account. Discount rates vary between 2 and 4 percent (sometimes lower or higher). In short, a business nets only $.98 or $.96 from each dollar of credit card sales. The credit card discount expense comes right off the top of the sales dollar. Sales commissions are another common example of sales revenue-dependent expenses. As you probably know, many retailers and other businesses pay their sales representatives on a commission basis, usually a certain percent of the total sales amount such as 5 or 10 percent.
What do You think about Prentice Hall's One-day MBA In Finance & Accounting?
