Friday, March 30, 2007

Cash Discounts, Trade Discounts, and Allowances

Discounts and Allowances are reductions to the selling price of goods or services. They can be applied anywhere in the distribution channel between the manufacturer, middlemen (such as distributors, wholesalers, or retailers), and retail customer. Typically, they are used to promote sales, reduce inventory, and reward or encourage behaviors that benefit the issuer of the discount or allowance.

Read about cash discounts, trade discounts, partial payment discounts, quantity discounts, and trade allowances in this Discounts and Allowances tutorial.

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