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 business 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%. This type of pricing would be an example of ____ discounts.
A) allowance
B) cash
C) seasonal
D) noncumulative
E) cumulative

Question

Quizplus · Accepted Answer

Cumulative discounts are offered for purchases made over a period of time. In this case, the discount is offered for orders of $100,000 or more during the next 90 days.