Question 58
Purchase and Sale of GoodsA deduction made by a wholesaler from the catalogue price and which represents a retailer's profit margin is called
- A.cash discount
- B.deferred payment
- C.trade discount
- D.quantity discount
- E.cash on delivery
Show the answer and explanation
Answer: C (trade discount)
Explanation
Trade discount is an allowance off the list price to traders, which gives the retailer his profit margin.