A deduction from list price for purchasing large quantities aggregated over a stated period of time is a
A) noncumulative quantity discount.
B) additive cash discount.
C) cumulative quantity discount.
D) cumulative discount allowance.
E) additive quantity reduction.

Question

Quizplus · Accepted Answer

A cumulative quantity discount is a deduction from the list price for purchasing large quantities over a specified period of time, and the discount is based on the total quantity purchased. Noncumulative discounts offer discounts based on a single purchase, additive cash discounts are discounts for paying in cash or within a specified time period, cumulative discount allowances are discounts based on prior purchases, and additive quantity reductions are a reduction in the price per unit when purchasing larger quantities.

A Deduction from List Price for Purchasing Large Quantities Aggregated