A trade discount is:
A)A term used by a purchaser to describe a cash discount given to customers for prompt payment.
B)A reduction in selling price below the list price given by a manufacturer or wholesaler.
C)A term used by a seller to describe a cash discount granted to customers for prompt payment.
D)Also called a Discount Lost.
E)Also called a rebate.

Question

Quizplus · Accepted Answer

A trade discount is a reduction in the selling price below the list price, typically offered by manufacturers or wholesalers to retailers or other buyers in the trade.

A Trade Discount Is