The allowance given to a retailer to enable him make a profit is known as

Assessment: WAEC SSCE - Commerce - 1996 (Objective) Subject: Commerce

Question 1 Report

The allowance given to a retailer to enable him make a profit is known as
Answer Details
The allowance given to a retailer to enable him make a profit is known as a trade discount. Trade discounts are reductions from the list price of a product or service and are given to wholesalers and retailers. It is usually a percentage of the list price and is intended to motivate retailers to sell the products at a higher profit margin. Trade discounts are not usually shown on invoices or financial statements, but are incorporated into the pricing structure of the product or service.
Read lesson note on Purchase And Sale Of Goods (JAMB)
Read lesson note on Commerce (JAMB)
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