In Relation to Discount Terms, What Does 5/7, N/30 Mean

question 49

Multiple Choice

In relation to discount terms, what does 5/7, n/30 mean?

• A) Invoice due on 5^th July or 30^th November.
• B) 50% discount if paid with 7 days, otherwise 30% discount.
• C) 50% discount, November 30th
• D) 5% discount to be deducted from the invoice price if payment is made within 7 days or the full amount is due within 30 days of the invoice date.

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Definitions:

Population Percent Defective

The percentage of items in a given population that do not meet the specified quality criteria, used as a measure of process quality.

OC Curve

The Operating Characteristic Curve, used in statistical quality control, representing the probability of accepting lots as a function of their defect level.

Acceptance Sampling

A statistical quality control method where a random sample of items is inspected to decide if the whole batch meets the prescribed standards.

AOQ

Average Order Quantity; the mean volume of goods ordered over a specific period of time, reflecting purchasing behavior.