Allowances,like discounts,refer to
A)rewards given to retailers to encourage early payment.
B)payment extensions given to cash-strapped consumers during the current recession.
C)list price deductions based on surges in consumer demand.
D)list price deductions based on sudden drops in consumer demand.
E)reductions from list or quoted prices to buyers for performing some activity.

Question

Quizplus · Accepted Answer

Allowances refer to reductions from list or quoted prices to buyers for performing some activity, such as providing advertising or display space, or agreeing to purchase in large quantities. Therefore, option E is the best choice. The other options do not accurately describe what allowances are.

Allowances,like Discounts,refer to