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:

Individual Job

A specific and unique task or set of tasks undertaken by a company, often used in job-order costing systems.

Time Tickets

Documents used to record the amount of an employee's time spent on each job or task, typically for billing or payroll purposes.

Factory

An establishment or complex of establishments involved in the machine-based production or assembly of merchandise.

Work in Process Account

An account in the general ledger representing the costs of incomplete products in manufacturing at any given time.