Which of the following is true about noncumulative quantity discounts?
A) They encourage large single orders.
B) They encourage a strong relationship between buyer and seller.
C) They are based on a total quantity purchased within a set time period.
D) They typically involve giving the buyer a credit to use against future orders.
E) They encourage small, regularly spaced orders.

Question

Quizplus · Accepted Answer

Noncumulative quantity discounts are designed to encourage customers to make large single orders rather than spreading their purchases over time. This is because the discount applies to each individual order rather than the total volume of goods purchased over a certain period.

Which of the Following Is True About Noncumulative Quantity Discounts