Price discounts are influenced by ________.
A) the volume of product purchased
B) the prime cost of production
C) the operational budget
D) the contribution -margin per unit

Question

Quizplus · Accepted Answer

Price discounts are typically influenced by the volume of product purchased. This is because the more units a buyer purchases, the lower the overall production costs are for the seller. The seller can then afford to offer a discount to incentivize the buyer to purchase a larger quantity of the product. Therefore, choice A is the best answer. Prime cost of production (B) and operational budget (C) may influence the overall pricing strategy, but not specifically the use of price discounts. Contribution-margin per unit (D) may also be a factor in pricing decisions, but does not directly impact the use of discounts.

Price Discounts Are Influenced by ________