Offering a NONCUMULATIVE quantity discount seeks to:
A) reduce the seller's shipping costs.
B) encourage bigger orders.
C) discourage small orders.
D) shift some of the storing function to the buyer.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Noncumulative quantity discounts are designed to encourage larger individual orders by offering a reduced price for buying in bulk. This strategy can lead to reduced shipping costs for the seller (A), as fewer, larger shipments are more efficient than many small ones. It encourages buyers to place bigger orders (B) and, by extension, discourages small orders (C) because the unit price is lower when purchasing in larger quantities. Additionally, by encouraging buyers to purchase more at once, it effectively shifts some of the storing function to the buyer (D), as they will need to manage the larger inventory.

Offering a NONCUMULATIVE Quantity Discount Seeks To