Which of the following is a reduction in the catalogue price?
Answer Details
A reduction in the catalogue price is referred to as a trade discount. A trade discount is a percentage deduction given by a seller to a buyer for purchasing goods in bulk or reaching a certain sales volume. It is a form of price reduction intended to promote sales by attracting customers to buy more of a product. Unlike a cash discount, which is a deduction given for early payment of a bill, a trade discount is deducted directly from the list or catalogue price of the goods.