A dairy farm sells milk to a confectionery company.The dairy offers the company a discount of 10 percent on the total amount of the invoice if the company settles the amount within a period of 7 days instead of the usual 30 days.This is an example of a(n):

Question

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This is an example of a cash discount, which is a reduction in the invoice price offered to buyers to encourage early payment.

A Dairy Farm Sells Milk to a Confectionery Company