Systematic study of this chapter will help the student to understand:
Basic terminology of profit and loss
Meaning of discount and its different types
Concepts of commission, brokerage and bonus and to calculate all these under practical situations
In today's business world the aim of every businessman is not only to earn profit but also to enhance their profit. The purchase and sale of items is a common practice for the producer, or for the seller of the item Hence the knowledge of profit—loss, discount, commission and brokerage is very essential.
The price at which an item is purchased or the cost of production of an item is called as