A discount deducted from the invoice price of goods to enable the retailer to make...
COMMERCE
WAEC 2020
A discount deducted from the invoice price of goods to enable the retailer to make profit is?
- A. cash discount
- B. functional discount
- C. trade discount
- D. seasonal discount
Correct Answer: C. trade discount
Explanation
A trade discount is a reduction in price a manufacturer or wholesaler gives a wholesaler or retail when they buy a product or group of products for resale. It is done so that the retailer or wholesaler can make profits after resale.
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