Which of the Following Best Explains 'Geographical Discount

question 34

Multiple Choice

Which of the following best explains 'geographical discount'? 

• A) Discount is based on volume ordered and buyers can realize a lower price per unit. 
• B) Discount is based on orders placed out of season for delivery later in the year. 
• C) Discount is based on the how fast the customer pays their bills. 
• D) Discount is based on customers 'proximity to the supplier's factory or distribution centre.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully equivalent completed units.

Physical Units

A measure used in manufacturing and production to count the actual units produced, irrespective of the production stage.

Units Started

The number of units of product that have begun the production process but are not yet completed.

Units Accounted

The total count of units tracked in an inventory or production system, including those produced, sold, and currently in stock.