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Which of the Following Statements Best Describes Allowances

Question 221

Multiple Choice

Which of the following statements best describes allowances?


A) Allowances are used in conjunction with quantity and cash discounts.
B) Allowances are the same as transfer prices.
C) Allowances are offered only to marketing channel members in order to increase sales.
D) Allowances result in reduction of the list price quoted on a product.

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