final bmath reviewer (key terms only)

• Trade discounts are reduction from list price, it is

  typically offered between manufacturer and

  wholesale or between wholesaler and retailer.
• List price is the suggested price of an item, which was

  set by the manufacturer or supplier.
• Net price is the amount a business actually pays for

  the merchandise after the discount has been

  subtracted.
• Invoice price is the actual price paid by the customer

  for the product.
• Interest is the fee or rent that lenders charge to

  borrowers for the temporary use of borrowed money.
• Simple Interest is calculated only on the principal

  amount and is paid at the end of the loan period
• Principal is the amount borrowed
• Rate of Interest is the percentage of the principal

  that will be charged for specified period of time
• Time is the time period of the loan or

  investment
• Loan date is the first day of a loan
• Due date is the last day of the loan
• Actual Time uses the exact number of days in every

  specific month
• Approximate Time uses 30 days in every month
• Exact Interest is computed in a 365 days in a year as

  the time factor denominator
• Ordinary Interest is a type of interest wherein the

  number of days is computed based on 360 days.
• Agent is person or a

  firm that represents a company to transact business for

  another.
• Commission is a way of compensation mainly used to

  pay employees who sell company ‘s commodities or

  services.
• Straight Commission is a type of commission wherein

  the salesperson’s earning or wage is based his/her

  commission alone.
• Incremental Commission or Graduated

  Commission is a commission given to salespersons

  who do not receive a regular salary and their

  commission rate increases as the sales volume

  increases
• Salary plus commission is when an employee is

  being paid a guaranteed salary plus a commission

  on total sales made by the employee.
• Compensation- It is a way to provide monetary value to employees in

  exchange of their work/service performed.
• Payroll- It is the total amount required to pay workers and

  employees during a week, month, or other period.

  It is also defined as the total sum of money to be paid

  out to employees at given time.
• gross pay- It is the total amount of employee’s earnings before

  deductions have been made by the employer.
• wage- It is the monetary remuneration (money paid for work

  or a service) computed on hourly, daily, weekly, or

  piece of work basis.

  A fixed weekly or monthly is usually called a salary.
• Time-based pay is a system where payment is related

  to the time you spend at work (e.g., a 40-hour week)

  rather than the number of things that you do or

  produce.
• Piece rate pay occurs when workers are paid by the

  unit performed (e.g. the number of tee shirts or bricks

  produced) instead of being paid on the basis of time

  spent on the job.
• Overtime Pay is computed by taking the product of the

  additional hours and the additional rate (overtime rate) which

  reflects the additional amount the workers would receive on top

  of his salary.