"Vendor allowances" should be used by the recipient to lower the carrying cost of inventory and thus ultimately to lower cost of goods sold.

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Vendor allowances are discounts or incentives offered by suppliers to their customers (i.e. vendors) to encourage them to purchase more products or to promote certain products. These allowances can be used by the recipient to reduce the cost of their inventory, which in turn can lead to lower cost of goods sold, higher profits, or more competitive pricing.

"Vendor Allowances" Should Be Used by the Recipient to Lower