Reductions in unit costs for a larger order are referred to as
A)promotional allowances.
B)quantity discounts.
C)one-price policy prices.
D)penetration prices.
E)size of order allowances.

Question

Quizplus · Accepted Answer

Quantity discounts are specifically designed to incentivize customers to purchase larger quantities of a product by offering reductions in unit costs. This often results in cost savings for the customer and increased revenue for the seller. None of the other options listed refer to discounts associated with larger orders.

Reductions in Unit Costs for a Larger Order Are Referred