Why Are Quantity Discounts Most Often Used

question 97

Multiple Choice

Why are quantity discounts most often used?

• A)to reward the buyer who pays in cash
• B)to encourage large orders
• C)to increase supply for a specific raw material
• D)to shift the storage function backward to the supplier

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Definitions:

Planetary Gearset

A complex system of gears that includes a central sun gear, multiple planet gears, and an outer ring gear, used in many automatic transmissions.

Sun Gear

The central or axis gear in a planetary gearset. It may be optioned to rotate or not rotate, depending on the gear arrangement and desired output ratios.

Ring Gear

A large gear that meshes with a smaller gear (pinion), often used in the differential of an automobile.

Planetary Gearset

a compact, high-torque gear system where the central gear (sun gear) drives multiple outer gears (planet gears) which in turn drive a ring gear.