The amount allowed off the cost price of an article to stimulate patronage is
Answer Details
The amount allowed off the cost price of an article to stimulate patronage is called a "trade discount."
Trade discount is a reduction in the list price of a product or service offered by a seller to its buyers, with the aim of encouraging bulk purchases or patronage. It is a discount that is deducted from the original selling price before an invoice is issued.
Unlike a cash discount, which is given to a buyer for paying an invoice within a specified time period, a trade discount is not tied to the payment terms. Instead, it is given as a reduction in the published price of a product or service.
Discount on debt is a reduction in the amount payable by a debtor to a creditor for settling a debt before the due date. Discount on bills, also known as "bill discounting," is a method of borrowing money in which a business sells its accounts receivable or invoices to a third party at a discount to obtain immediate cash.