Answer (D) is correct . Seasonal discounts are designed to smooth production by the selling firm. For example, a ski manufacturer offers seasonal discounts to retailers in the spring and summer to encourage early ordering.
Answer (A) is incorrect because Cash discounts encourage prompt payment.
Answer (B) is incorrect because Quantity discounts encourage large volume purchases.
Answer (C) is incorrect because Functional or trade discounts are provided to channel members in return for the performance of certain functions, such as selling, storing, and record keeping.
|
