When the salesperson from Affiliated Food Inc.,a grocery distributor,calls on a grocery stores,she is authorized to offer a 15 percent discount from the list price in recognition of activities (such as unpacking items and stocking shelves)that retailers perform for the distributor.This 15 percent discount is a _____.
A) quantity discount
B) promotional allowance
C) functional discount
D) seasonal discount
E) channel allowance

Question

Quizplus · Accepted Answer

A functional,or trade,discount is the customary discount from list price that is offered to intermediaries in recognition of functions they perform in the selling of the product.

When the Salesperson from Affiliated Food Inc