EXTENDED PRICE Meaning and
Definition
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Extended price is a financial term used to refer to the total cost of a product, service, or order. It represents the sum of the prices of individual items or units along with any applicable taxes, fees, or additional charges. The purpose of calculating the extended price is to determine the overall expense involved in a transaction or purchase.
In retail, the extended price is often calculated by multiplying the quantity of each item with its respective unit price, and then adding up the costs of all the items in the shopping cart or order. This concept is especially important when dealing with bulk purchases or large quantities of products.
The extended price is inclusive of any additional expenses such as shipping fees, handling charges, or any applicable taxes. For instance, if a customer purchases five units of a product priced at $10 each, the extended price would be $50. However, if a sales tax of 5% is applicable, the extended price would include this tax, resulting in a total amount of $52.50.
Businesses often use extended pricing to provide customers with a clear breakdown of the costs involved in a purchase. It allows buyers to understand the true total cost before making a decision and helps them monitor expenses and budget accordingly. In addition, vendors and suppliers typically quote extended prices when issuing invoices or estimates, ensuring transparency and accuracy in financial transactions.
Common Misspellings for EXTENDED PRICE
- wxtended price
- sxtended price
- dxtended price
- rxtended price
- 4xtended price
- 3xtended price
- eztended price
- ectended price
- edtended price
- estended price
- exrended price
- exfended price
- exgended price
- exyended price
- ex6ended price
- ex5ended price
- extwnded price
- extsnded price
- extdnded price
- extrnded price
Etymology of EXTENDED PRICE
The etymology of the word "extended price" can be traced back to the Latin word "extendere", which means to stretch out or to extend. In the context of pricing, "extended" refers to the act of extending or stretching out a specific quantity or unit price over a larger quantity or total. The term "extended price" is commonly used in business and retail to refer to the total cost of a product or service when multiplied by the quantity or units being purchased.
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