A credit allowance given for a used item when a customer purchases a new item is known as a _____.
A)rebate
B)trade-in
C)functional discount
D)cash discount

Question

Quizplus · Accepted Answer

A trade-in is when a customer turns in a used item and receives a credit allowance that is applied towards the purchase of a new item. Rebates, functional discounts, and cash discounts are all different types of pricing incentives that may be offered to customers but do not involve a trade-in of a used item.

A Credit Allowance Given for a Used Item When a Customer