John's Ice Cream Company purchases milk and cream from a local dairy farm. The dairy farm's standard pricing policy is 60 days to receive full payment. However, they offer a 5 percent discount on the total purchase price if John's Ice Cream Company pays the full amount (less discount)within 30 days. This is an example of offering:
A)cash discounts.
B)flexible pricing policies.
C)promotional allowances.
D)quantity discounts.

Question

Quizplus · Accepted Answer

The situation described is an example of offering cash discounts, as a discount is being offered for paying the full amount within a certain timeframe.

John's Ice Cream Company Purchases Milk and Cream from a Local