Accounting Dictionary - Letter Q
is a price reduction on the purchase of large quantities of merchandise. Quantity discount types include (1) Noncumulative quantity discount; (2) Cumulative quantity discount; and (3) Free merchandise. Noncumulative quantity discount is based on a single purchase whereas cumulative quantity discount is based on purchases made over time. Other types of discounts are cash discounts, trade discounts, and promotional discounts.
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