A percentage reduction from the quoted price of goods given to a buyer to encourage...
COMMERCE
WAEC 2012
A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called
- A. cash discount
- B. trade discount
- C. commission
- D. bonus
Correct Answer: A. cash discount
Explanation
A cash discount is a reduction in the amount of an invoice that the seller allows the buyer. This discount is given in exchange for the buyer paying the invoice earlier than its normal payment date and also encourages bulk purchases
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *