As the financial officer for a company that manufactures lawn furniture from recycled materials, Mike knows the company needs to get its buyers to pay their bills more quickly. What kind of discount would be most likely to encourage faster bill payment?

Question

Quizplus · Accepted Answer

A cash discount is specifically designed to encourage buyers to pay their bills more quickly by offering a reduction in the invoice amount if the bill is paid within a certain period of time. This directly incentivizes faster payment to save money.

As the Financial Officer for a Company That Manufactures Lawn