| A | B |
|---|
| cash discounts | Discounts offered to buyers as an incentive for paying the invoice amount within a specified number of days. |
| cost of merchandise sold | The amount paid by a business for products purchased for resale or for use in the production of other goods. |
| cumulative quantity discount | Based on a buyer’s total purchases during a specified period of time. |
| markdowns | Reductions in selling price used to stimulate sales, dispose of slow moving/discontinued merchandise, meet competitors’ prices, and/or increase customer traffic. |
| non-cumulative quantity discount | Reductions given to buyers for a one-time purchase or shipment. |
| profit | Revenue remaining after the expenses of running the business have been deducted from income. |
| quantity discount | Reduction in price given by manufacturers/ wholesalers when a large or specified quantity is purchased. |
| trade discounts | Discounts offered to channel members for performing certain functions like storing or record keeping. |
