Accepting discounts by buying at least a certain amount of material involves _____ costs that may make taking the discount _____.The analysis of total costs with and without the discount is essential.
A)extra;profitable
B)extra;unprofitable
C)less;profitable
D)less;unprofitable

Question

Quizplus · Accepted Answer

Accepting discounts by buying a certain amount of material involves extra costs such as storage, transportation, and inventory holding, which may make taking the discount unprofitable. Therefore, it is important to analyze the total costs with and without the discount to determine whether accepting the discount is a profitable choice.

Accepting Discounts by Buying at Least a Certain Amount of Material