A trade-in allowance refers to
A)a noncash exchange of one product for another of equal or greater value.
B)a cash-back payment when a more expensive item is replaced with a less expensive item.
C)a price reduction given when a used product is part of the payment on a new product.
D)the return of money based on proof of purchase.
E)a cash payment to a retailer for extra in-store support or special featuring of the brand.

Question

Quizplus · Accepted Answer

A trade-in allowance is a price reduction given when a used product is part of the payment on a new product. It is a common practice in the automobile industry, but it can also apply to other big-ticket items like electronics or appliances. The value of the trade-in is usually determined by the market value of the used item or by a negotiated price between the buyer and the seller.

A Trade-In Allowance Refers to