A chain of restaurants in San Francisco uses Stroh Ranch Marinade in many of its meat entrees. The chain also sells the marinade in a display next to its cash registers. For every case the restaurant sells, it receives a free bottle for the kitchen. This is an example of a:
A) promotional allowance.
B) forward-dated discount.
C) seasonal discount.
D) rebate.
E) quantity discount.

Question

Quizplus · Accepted Answer

This is an example of a promotional allowance, where the restaurant receives a free bottle for every case sold, as an incentive to promote and sell the marinade.

A Chain of Restaurants in San Francisco Uses Stroh Ranch