John's Ice Cream Company purchases milk and cream from a local dairy farm.The dairy farm's standard pricing policy is 60 days to receive full payment.However,they offer a 5 percent discount on the total purchase price if John's Ice Cream Company pays the full amount (less discount)within 30 days.This is an example of offering:
A)quantity discounts.
B)flexible pricing policies.
C)promotional allowances.
D)cash discounts.

Question

Quizplus · Accepted Answer

This is an example of offering cash discounts, which encourage customers to pay their bills early by offering a discount on the total price if payment is made within a specific timeframe.

John's Ice Cream Company Purchases Milk and Cream from a Local