If a manufacturer offered an intermediary a percentage discount off the list price of products it handled in exchange for performing certain wholesaling activities,this would be classified as a:
A)cash rebate.
B)list price.
C)cumulative discount.
D)trade discount.

Question

Quizplus · Accepted Answer

Trade discount is a discount offered by a manufacturer or supplier to an intermediary (such as a wholesaler or retailer) for performing certain functions such as bulk ordering, storing inventory, and promoting the products. This discount is not usually listed on the invoice or receipt, and is instead deducted from the list price of the products before the intermediary pays for them.

If a Manufacturer Offered an Intermediary a Percentage Discount Off