A Clothing Line Company Promises a Large Price Reduction to Its

question 50

Multiple Choice

A clothing line company promises a large price reduction to its wholesalers if they feature the company's goods in their promotional campaigns.This is an example of a(n) :

• A)seasonal discount.
• B)advertising allowance.
• C)odd price.
• D)listing allowance.
• E)cash discount.

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Definitions:

Depreciation Expense

The charge to the income statement for a particular period that represents the allocation of the cost of tangible assets over their useful lives.

Depreciation Method

A systematic approach to allocating the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Plant Asset

A long-term tangible asset held for manufacturing, production, or supply of goods and services, such as machinery and buildings.

Contribution To Revenue

The portion of sales revenue that is not consumed by variable costs and contributes to covering fixed costs.