Trade discounts:
A) Are offered at every level of the channel: wholesalers, retailers and final customers.
B) Are virtually standard across all industries in the U.S.
C) Are reductions from list price.
D) Reduce the cost of the product if the firm pays the bill within 20 days.
E) Are seldom used.

Question

Quizplus · Accepted Answer

Trade discounts are reductions from the list price offered to wholesalers, retailers, or other channel intermediaries. They are commonly used to incentivize bulk purchasing or to encourage channel members to carry a specific product line.

Trade Discounts