Bulk Discount is best described as which?

• A. A discount usually offered to customers who buy a large amount of goods
• B. A percentage discount given to regular customers
• C. A discount for prompt payment
• D. A discount that applies to inventory turnover

Answer: (A)

A bulk discount is a price reduction offered when a customer buys a large quantity of goods. It’s meant to reward and encourage bigger orders, often applying as a discount off the total value of a large purchase. This is different from a cash discount, which is given for paying promptly, and from loyalty or regular-customer discounts, which reward repeat business rather than the size of a single order. It also isn’t typically described as something that directly relates to inventory turnover. So the description that best fits bulk discount is a discount usually offered to customers who buy a large amount of goods.