On a sale, which field sets the price customers will pay for a product?

• A. Sales price/rate
• B. Purchase price
• C. Cost
• D. Tax rate

Answer: (A)

The price customers will pay during a sale comes from the sales price field. This field is where you set the actual selling price shown to the customer, which can be a discounted or promotional amount separate from the item’s standard price. The purchase price is what you pay to acquire the item from a supplier, not what the customer pays. Cost is an internal measure of what the item costs your business, used for profitability analysis rather than setting sale prices. The tax rate determines how much tax is added to the sale, but it doesn’t define the base selling price itself. For example, you might set a sales price of $79 to advertise a sale, while the standard price remains higher; tax would then be calculated on that $79 plus tax rate.