JAMB - Commerce (2024 - No. 11)
An allowance made to a customer for prompt payment is known as
bulk discount
commission
cash discount
allowance
Paliwanag
A cash discount refers to a reduction in the price or amount owed by a customer for making prompt payment. It is a financial incentive offered by the seller to encourage customers to pay their invoices or bills within a specified time frame. By offering a cash discount, the seller aims to improve cash flow and reduce the risk of late or non-payment.