Energizer Offers Its Customers a Reduction in Price If They

question 217

Multiple Choice

Energizer offers its customers a reduction in price if they pay for their shipments of batteries within ten days of receiving them. This is a(n)

• A) sales allowance.
• B) trade discount.
• C) sales return.
• D) sales discount.
• E) inventory reduction.

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Definitions:

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than competitors using the same amount of resources.

Comparative Advantage

An economic theory that suggests a country should produce and export goods in which it has a lower opportunity cost than other countries.

Temporary Advantage

An advantage or benefit that an organization holds for a short period of time, often due to a unique product, service, or situation.