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Math DefinitionsSDP
Math Definitions for SDP
7
Business
Professional
07/28/2010

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Term
Acquisition Cost
Definition
MP&S product purchase cost from the supplier. aka In-stock cost
Term
inbound freight
Definition
The charge to MP&S from the supplier for delivering product to our D.C
Term
standard cost
Definition
CAH base cost. This is the cost used to calculate GP$ and Margin if the item is NOT covered by a supplier rebate contract
Term
contract cost
Definition
Actual amount on the supplier rebate contract. Represents a discounted cost; something lower than standard cost. IF a product is covered by a contract, CAH will receive a rebate from the supplier.
Term
rebate
Definition
Dollar amount due CAH for items that have a supplier contract cost (acquisition cost-contract cost)
Term
adjusted cost
Definition
the final cost we use to calculate GP$ and margin. Adjusted cost will equal standard cost if the item is not covered by a supplier rebate contract.
Term
GP margin
Definition
profitability as a % of sales.
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