An allowance made to a customer for prompt payment is known as

JAMB Commerce 2024 134 views
Source: JAMB · 2024

An allowance made to a customer for prompt payment is known as

  1. allowance
  2. bulk discount
  3. cash discount ✓
  4. commission
Explanation

Cash discount rewards customers who pay quickly. The faster you pay, the less you owe.

Terms like “2/10 net 30” mean 2% off if you pay within 10 days.

Bulk discount is for buying large quantities. Commission is payment to agents.

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