Heya user✌️
Advantage -
Trade discount
Cash discount
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hope it wiLL help you
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meghakittu:
its good
so you can make it brainest
Answered by
2
Hey user!
Advantage of trade discount:
➡️It improves sales by encouraging the purchase to buy large quantities.
➡️It reduces the purchase cost of the purchaser and thus, increase profit margin.
➡️A change in the rate of trade discount may be used as a tool to face competition .
➡️Different price can be charged to regular customer and occasional customer .
➡️It enable the retailer to sell at the list price and at better profit .
➡️It is any easy method of making changes in price without reprinting catalogues or changing the price given in the article .
Advantage of cash discount:
➡️Seller of goods realises the sales amount promptly.Cash discount is allowed to encourage a debtor to pay within a specified period .
➡️The possibility of bad debts is reduced for the seller.
➡️It improve the cash inflow of the business which can be better utilised .
➡️ Early Payment result in higher cash discount thus, increases income .
Advantage of trade discount:
➡️It improves sales by encouraging the purchase to buy large quantities.
➡️It reduces the purchase cost of the purchaser and thus, increase profit margin.
➡️A change in the rate of trade discount may be used as a tool to face competition .
➡️Different price can be charged to regular customer and occasional customer .
➡️It enable the retailer to sell at the list price and at better profit .
➡️It is any easy method of making changes in price without reprinting catalogues or changing the price given in the article .
Advantage of cash discount:
➡️Seller of goods realises the sales amount promptly.Cash discount is allowed to encourage a debtor to pay within a specified period .
➡️The possibility of bad debts is reduced for the seller.
➡️It improve the cash inflow of the business which can be better utilised .
➡️ Early Payment result in higher cash discount thus, increases income .
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