A discount deducted from the invoice price of goods to enable the retailer to make profit is?
Answer Details
The discount that is given to a retailer from the supplier's invoice price of goods is called a "trade discount." This discount is typically given to the retailer as a percentage off the listed price, allowing the retailer to make a profit when they sell the goods to their customers at the listed price. Trade discounts are a common business practice and are often used to incentivize retailers to purchase goods in larger quantities or to establish long-term relationships with suppliers. Unlike a cash discount, which is given to a customer who pays their bill quickly, a trade discount is given to the retailer regardless of when they pay their bill. A seasonal discount is a discount that is given to customers during a particular season, and a functional discount is a discount that is given to customers for meeting certain criteria or fulfilling specific functions.