When a retailer makes a single purchase of 25 or more cases of wine,the vendor offers an extra 20 percent discount.This is an example of a:
A) noncumulative-quantity discount.
B) promotional allowance.
C) cash discount.
D) functional discount.
E) cumulative-quantity discount.

Question

Quizplus · Accepted Answer

This is an example of a noncumulative-quantity discount because the discount is offered on a single purchase of a large quantity of items (in this case, 25 or more cases of wine), rather than based on the total quantity purchased over a period of time.

When a Retailer Makes a Single Purchase of 25 or More