A Marketing Manager Might Offer a Cash Discount to Channel

question 50

Multiple Choice

A marketing manager might offer a cash discount to channel members to:

• A) increase sales during a slow period.
• B) encourage buyers to pay their bills quickly.
• C) reduce shipping or selling costs.
• D) encourage them to buy in larger quantities.
• E) All of these alternatives are correct.

---

Definitions:

Sales Commissions

A form of compensation to salespersons for their sales achievements, usually calculated as a percentage of the sales they generate.

Net-of-Tax Basis

A method of presenting financial figures after the effect of taxes has been considered or deducted.

Depreciable Equipment

Tangible assets, such as machinery or hardware, acquired for use in operations, which lose value over time due to usage, wear and tear, or obsolescence and can be depreciated.

Prior-Period Adjustment

Corrections of errors made in previously published financial statements, not considered ordinary adjustments.