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A Dairy Farm Sells Milk to a Confectionery Company

Question 59

Multiple Choice

A dairy farm sells milk to a confectionery company.The dairy offers the company a reduction of 10 percent on the total amount of the invoice if the company settles the amount within a period of 7 days instead of the usual 30 days.This is an example of a(n) :


A) seasonal discount.
B) listing allowance.
C) cumulative quantity discount.
D) rebate.
E) cash discount.

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