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What is the term used for a reduction in the cost of inventory purchased that is given for paying promptly?

1) Discount
2) Markup
3) Profit
4) Loss

User Ha Bom
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1 Answer

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Final answer:

The term for a reduction in cost for prompt payment of inventory is a discount, and it's comparable to a shopper getting a good deal on a product, which means purchasing at less than the market value.

Step-by-step explanation:

The term used for a reduction in the cost of inventory purchased that is given for paying promptly is a discount. This incentive is often provided by suppliers to encourage quick payment and improve cash flow. In essence, this is similar to what economists would describe as a shopper getting a "good deal" on a product, which typically means the shopper is able to purchase something at a price less than what is considered the market value, thus receiving more value for their money.

User Ivan Gerasimenko
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