Auckland Plastics would like to improve its cash flow by offering its customers a discount for prompt payment. The company would MOST likely use:
A) special discount.
B) quantity discount.
C) functional discount.
D) cash discount.
E) allowance.

Question

Quizplus · Accepted Answer

Auckland Plastics would most likely use a cash discount to encourage prompt payment from its customers. This is a reduction in the price of the product or service offered to customers who pay within a specified period of time. This would help the company to improve its cash flow by ensuring that payments are received in a timely manner.

Auckland Plastics Would Like to Improve Its Cash Flow by Offering