The extra payment awarded to resellers for their participation in special programs is classified as __________?
Correct answer: A. allowance
- A. allowance
- B. offset discount
- C. seasonal discount
- D. equalizing discount
Explanation
An allowance is an extra payment or price reduction given to resellers for taking part in approved promotional or special programs. Discounts usually reduce the invoice price directly, whereas an allowance rewards a specific activity.
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