To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use:
A)trade discounts.
B)seasonal discounts.
C)cumulative discounts.
D)noncumulative discounts.

Question

Quizplus · Accepted Answer

Seasonal discounts are discounts offered by manufacturers or suppliers to encourage buyers to stock inventory earlier than their normal demand would require. These discounts are offered during off-seasons or slow business periods to entice buyers to purchase in bulk and store the excess inventory until they are ready to sell it. This helps manufacturers or suppliers to maintain their production levels and keep their inventory moving, while providing buyers with cost savings. Trade discounts (A) are discounts offered to customers who buy in bulk or meet other specific criteria, cumulative discounts (C) are discounts that increase as more products are purchased, and noncumulative discounts (D) are discounts that do not accumulate or increase over time.

To Encourage Buyers to Stock Inventory Earlier Than Their Normal