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BEC - Business Environment & Concepts (Forum Locked Forum Locked)
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Subject Topic: The discount forumula Post ReplyPost New Topic
  
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pearljam10
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Posted: 26 Jul 2010 at 22:48 | IP Logged Quote pearljam10

When should u take or forgo the discount/  That 2/10 net 30.   Lower or higher rate?

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joecjr
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Posted: 28 Jul 2010 at 23:52 | IP Logged Quote joecjr

I didn't think you should forgo a discount if you can pay for the product in the time period.

Isn't is supposed to be what is the cost of not taking the discount?

that is %discount/ 100%-%discount x 365/ days in pay period- days to take discount.

right?

so in your example

2%/100%-2% x 365/30-10

cost of not taking discount is 37.7%



__________________
FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
REG [80] 1110 Yaeger
Done 12/16/2010
1year & 4months

Philadelphia, PA
joey_cjr@yahoo.com
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pearljam10
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Posted: 31 Jul 2010 at 17:02 | IP Logged Quote pearljam10

When should u not take the discount?  Thats what is am trying to figure out.  For example, you get 29.9 once you calculate the numbers into formula.  However, from another company you are geting discount of 28.9.  The last compan is offering you a discount of 40percent.  All these numbers were calculated from the formula.  Which discount should you forgo if u are geting a 29.9 discount/.  Should u take the 28.9 or or 40.00.  Thank you

Did you do the simulations in the wiley book for far and all of the multiple choice questions?  I am in a bind right now.  I have far on the 27 and bec on the 31.  I have three modules left.  All of the government bs and stock equiFor bec

For bec I have economics left and business structure.  I am probally going to do a quick read and focus my attention on the variances, budgeting, cost accounting, cost profit analysis, and capital budgeting

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pearljam10
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Posted: 31 Jul 2010 at 17:07 | IP Logged Quote pearljam10

I was just at montage mountain last week.  Are u close to that place.  I think thats where the scranton Yankees play.  
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2010_2011
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Posted: 31 Jul 2010 at 17:54 | IP Logged Quote 2010_2011

Problem from B-3:

On page B3-62 (from Becker), the formula for payment discounts is given as [360/ (pay period – discount period)] * [discount/ (100-discount %)].

My question is that the 360 days in the formula, shouldn’t we take 365 days. In the exam what should we take 360 or 365?

Your help will be highly appreciated,

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