What’s the difference between order and volume discounts? Justify your answer.

Q: What are the two types of discounts?

A:

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: Examples of a market order, limit order and a stop loss?

A: To buy or sell Common stock or shares of a firm, you can place different types of buy/sell orders…

Q: What is WACC and why would that be used as the discount rate?

A: WACC stands for Weighted Average Cost of Capital. It is a calculation of a firm's cost of capital in…

Q: What is a market order? What is a limit ordrer?  how are each executed?

A: Market order is a type of instructions in the stock market to purchase or sell the securities…

Q: When should special pricing orders be accepted?

A: Special pricing order: A special order is a unique one time order made by a customer. In this order…

Q: What is the concept of present value? What is discounting?

A: Present value means value of future cash flows in todays terms.

Q: What is the discounted-payback method?

A: Payback period states the number of years that is taken by the project to recover the investment of…

Q: What is meant by the terms clean price and dirty price?

A: Clean price: The clean price is the price of a coupon bond does not comprise any accumulated…

Q: Describe in detail the Stochastic Discount Factor (SDF)and its components.

A: Stochastic discount factor is defined as the concept, which has the combination of the financial…

Q: Define Trade discounts.

A: Business:   It refers to a commercial activity involving buying and selling of a product or a…

Q: Compare standard quantity discounts to cumulative quantity discounts.

A: Cumulative Quantities Discount (CQD) is a system intended to recompense consumers after a definite…

Q: Define Purchase return.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: Define special pricing.

A: Pricing: Pricing is a process where manufacturing company fixes prices for the products that are…

Q: Explain Pass-Through Rates, Yields, and Servicing Fee?

A: Pass-through rateA rate of interest being paid to the investors on the securitized asset after…

Q: The modified internal rate of return (MMIR) is the discount rate that forces the _____.

A: Explanation: Modified internal rate of return can be better understood from the below formula, where…

Q: The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the…

A: The break-even point is the level of income that a business needs to achieve in order to be neither…

Q: Understand and apply the lower-of-cost-or-market rule.

A: Cost: It is the economic value incurred by an organization to produce a product or render a service.

Q: What is the discounting process?

A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…