As an Incentive for Customers to Pay Their Accounts Promptly

question 108

Multiple Choice

As an incentive for customers to pay their accounts promptly a business may offer its customers

• A) a sales discount.
• B) free delivery.
• C) a sales allowance.
• D) a sales return.

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Definitions:

Special Order

An order for goods or services that is outside the company's normal scope of products or services, often requiring special pricing or terms.

Incremental Costs

The additional costs that are incurred if a certain decision is made or an action is taken.

Incremental Revenue

Additional income received from increasing business activities or sales volumes, often analyzed to decide on new projects or expansions.

Machine Hours

A measure of the amount of time a machine is utilized during the production of goods, often used to allocate manufacturing overhead.