Trade discounts are all of the above. They are a means of computing a price, used to avoid frequent changes in catalogues, and quoted at different prices for different quantities purchased. They are not recorded in the accounts, but are rather a pricing strategy used by businesses.

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Trade Discounts Are

Question 59

Multiple Choice

Trade discounts are

A) not recorded in the accounts; rather they are a means of computing a price.
B) used to avoid frequent changes in catalogues.
C) used to quote different prices for different quantities purchased.
D) all of the above.

Correct Answer: