A one-time reduction in list price typically offered at the time of sale is referred to as a(n):
A)allowance.
B)rebate.
C)cumulative discount.
D)noncumulative discount.

Question

Quizplus · Accepted Answer

A one-time reduction in list price offered at the time of sale is a noncumulative discount. Option A, allowance, refers to a price reduction offered for various reasons, such as a damaged product or a first-time buyer discount. Option B, rebate, refers to a partial refund of the purchase price offered after the sale, typically as a form of incentive or promotion. Option C, cumulative discount, refers to a price reduction offered based on the customer's total purchase over a specified period.

A One-Time Reduction in List Price Typically Offered at the Time