Manufacturers use cash discounts primarily because they benefit from

Question

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Manufacturers use cash discounts primarily to accelerate cash flow and take advantage of the time value of money. By offering a lower price for payment upfront, they can receive cash sooner and invest it, earn interest, or reduce borrowing costs. This can be especially important for manufacturers that have a high need for working capital or face seasonal demand fluctuations. The other options listed do not directly relate to the use of cash discounts by manufacturers.

Manufacturers Use Cash Discounts Primarily Because They Benefit from