Manufacturers use cash discounts primarily because it allows them to benefit from
A) uniformed delivered pricing.
B) seasonal slotting allowances.
C) price skimming.
D) the time value of money.
E) high/low pricing.

Question

Quizplus · Accepted Answer

Manufacturers use cash discounts primarily because it allows them to benefit from the time value of money, which means they receive payment earlier and can invest that money to earn interest, ultimately generating additional revenue.

Manufacturers Use Cash Discounts Primarily Because It Allows Them to Benefit