ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The businesses that sell you inventory
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A discount from the list price of an item allowed by a manufacturer to wholesalers and merchants
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A target inventory of what you think you will need to keep in stock
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A form of guaranteed payment
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Detailed explanation-1: -However, when a reseller offers to buy the product in bulk, the manufacturer reduces the listed price of the product. This is called a trade discount. Trade discounts are often given based on good manufacturer-buyer relationships or in the event of bulk orders.
Detailed explanation-2: -In simple words, a Trade discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods. It is given as a deduction in the list price or retail price of the quantity sold.
Detailed explanation-3: -Trade discount is allowed to promote the sales and its an indirect expenses which need to be debited to profit & loss account.
Detailed explanation-4: -Trade discounts are given by manufacturers to wholesalers or retailers. Sales discounts, on the other hand, are discounts offered by retailers or wholesalers to final consumers. Trade discounts also happen to have fewer restrictions than sales discounts.