A Price Reduction Given When a Used Product Is Part

question 235

Multiple Choice

A price reduction given when a used product is part of the payment on a new product is referred to as a

• A) cash discount.
• B) seasonal discount.
• C) trade-in allowance.
• D) promotional allowance.
• E) subsidy discount.

---

Definitions:

Variable

A quantity or element that is subject to change, often used in mathematical equations or experiments to represent changeable factors.

Contribution Format

A type of income statement where costs are segregated into variable and fixed categories, emphasizing cost behavior and contribution margin.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor expenses.

Merchandising Company

A business that purchases finished products and sells them to consumers without further processing.