MANAGEMENT

Detailed explanation-1: -A reduction from the list price that is offered by a seller to buyers in payment for marketing functions the buyers will perform is known as a Functional discount.

Detailed explanation-2: -Trade discount is referred to as the discount that is offered by a seller to the buyer of the product in the form of reduction in the price of the item. Trade discounts are offered to increase the sales of the product and make the customers feel that they are getting the best offer.

Detailed explanation-3: -A trade discount is the amount by which a manufacturer reduces the retail price of a product when it sells to a reseller, rather than to the end customer.

Detailed explanation-4: -A sales discount is a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer. A sales discount may be offered when the seller is short of cash, or if it wants to reduce the recorded amount of its receivables outstanding for other reasons.