Allowances, Like Discounts, Are

question 218

Multiple Choice

Allowances, like discounts, are

• A) rewards given to retailers to encourage early payment.
• B) payment extensions given to cash-strapped consumers during the current recession.
• C) list price deductions based on surges in consumer demand.
• D) list price deductions based on sudden drops in consumer demand.
• E) reductions from list or quoted prices to buyers for performing some activity.

---

Definitions:

Control Chart

A statistical tool used in quality control processes to monitor and control a process variable over time, identifying trends, shifts, or outliers.

Operating Characteristics Curve

A graphical representation showing the relationship between the capacity of a system or process and one or more of its operating parameters.

Acceptance Sampling

A statistical quality control method where a random sample is tested from a lot, and the lot is accepted or rejected based on the results.