Quantity discounts refer to
A) price reductions in unit costs for placing a larger order.
B) price reductions for placing long-term pre-scheduled orders.
C) price reductions to encourage retailers to stock inventory earlier than their normal demand would require.
D) reductions in unit costs for purchasing items that are nearing their expiration dates.
E) reductions in unit costs for taking merchandise that will soon be replaced by new and improved versions of the original product.

Question

Quizplus · Accepted Answer

Quantity discounts are price reductions that are provided to a buyer for placing a larger order. As the order size increases, the seller's unit costs decrease due to economies of scale. These cost savings can be passed on to the buyer in the form of price discounts.

Quantity Discounts Refer to