Unilateral Price Increase Without Notice Is an Example of "Crunch

question 2

True/False

Unilateral price increase without notice is an example of "crunch" or a negative tool for the supplier to shift position on the buyer-supplier satisfaction matrix.

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Definitions:

Discount Period

The timeframe within which a buyer can make payment less a discount for early settlement, encouraging quicker payment from customers.

Operating Expense Section

A part of the income statement that lists expenses related to the day-to-day operations of a business, excluding the cost of goods sold.

Wholesaler

An intermediary entity in the distribution channel that buys goods in bulk from manufacturers and sells them to retailers or other businesses, but not directly to consumers.

Contra Account

A contra account is an account used in the general ledger to reduce the value of a related account when the two are netted together.