Scenario 19.2 Use the following to answer the questions.The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 19.2. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts.
A)allowance
B)cash
C)seasonal
D)noncumulative
E)cumulative

Question

Quizplus · Accepted Answer

This type of discount is cumulative, which means that it accumulates over time and is based on the buyer's total orders during the specified period. In this case, the rebate is based on each order of $100,000 or more, and buyers can receive the discount multiple times if they place multiple orders.