Question

Unlike cumulative quantity discounts, noncumulative quantity discounts only apply to ______ orders.

Answer 1

Noncumulative quantity discounts only apply to individual orders rather than the cumulative quantity of multiple orders.

Step-by-step explanation:

Noncumulative quantity discounts only apply to individual orders rather than the cumulative quantity of multiple orders. This means that each order must meet a certain quantity threshold in order to qualify for the discount.

For example, let's say a company offers a noncumulative quantity discount for a product. The discount may only be applicable if a customer orders a minimum of 100 units in a single order. If the customer places two separate orders of 50 units each, they would not qualify for the discount because neither order meets the required quantity threshold.

In contrast, cumulative quantity discounts are based on the total quantity of orders placed over a specified period of time. Each order contributes to reaching the discount threshold, and when the cumulative quantity reaches a certain level, the discount is applied.