A Base Price May Be Lowered Through the Use of a Discount.Discounts

question 4

Essay

A base price may be lowered through the use of a discount.Discounts take a variety of forms and have several different objectives.Name and define three types of discounts (do not include allowances or rebates).State the main objective of the each type of discount you identify.

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Definitions:

Accounting Profit

The profit a company has after deducting all its expenses from its total revenue.

Verizon Wireless

A major American telecommunications company known for providing wireless products and services.

Implicit Cost

The opportunity cost incurred by using assets, resources, or funds for a specific purpose rather than the next best alternative.

Competitive Rate

Pricing that is on par or better than what is offered by competitors in the market, often used to attract customers.