FM 224 Lecture Notes - Lecture 3: Financial Intermediary, Gross Margin, List Price

• School: FIT
• Department: Fashion Business Management
• Course: FM 224
• Professor: Janewerner

Document Summary

Allowance: reimbursement or compensation granted to the retailer by the seller in return for specific services, such as advertising or display. Bank office: a firm that assists vendors with operations, logistics, warehousing and customer service. Billed cost/gross cost: the pri(cid:272)e sho(cid:449)(cid:374) o(cid:374) the (cid:448)e(cid:374)dor"s i(cid:374)(cid:448)oi(cid:272)e after dedu(cid:272)tio(cid:374)s for trade and/or quantity discounts, but before cash discounts are taken. Buying allowance: a price reduction for buying merchandise during a specified period. Damage allowance: an allowance given to a retailer to compensate for the cost of merchandise that has been returned, but cannot be resold. Dating: the time limits that apply for paying for merchandise. Discount date: the last day on which the discount is allowed in the discount period. Factor: fi(cid:374)a(cid:374)(cid:272)ial i(cid:374)ter(cid:373)ediar(cid:455) that (cid:272)olle(cid:272)ts (cid:448)e(cid:374)dors" re(cid:272)ei(cid:448)a(cid:271)les fro(cid:373) retailers. Fob (free on board): a shipping term placed before a specific location, such as factory, origin, or store. These ter(cid:373)s (cid:272)a(cid:374) also (cid:271)e (cid:449)ritte(cid:374) as (cid:862)fob co(cid:374)solidatio(cid:374) poi(cid:374)t(cid:863)