When deciding whether or not to take a trade discount,the cost of borrowing from a bank should be compared to the cost of trade credit to determine if the cash discount should be taken.

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It is true that the cost of borrowing from a bank should be compared to the cost of trade credit in order to determine whether or not to take a trade discount. This analysis can help a company make an informed decision about whether to pay early to receive a cash discount or to hold onto their cash and pay the full amount at a later date.

When Deciding Whether or Not to Take a Trade Discount,the