When the salesperson from Affiliated Food, Inc., a grocery distributor, calls on a grocery store, she is authorized to offer a 15 percent discount from the list price in recognition of activities (such as unpacking items and stocking shelves) that retailers perform for the distributor. This 15 percent discount is a:
a. quantity discount.
b. promotional allowance.
c. functional discount.
d. seasonal discount.
e. channel allowance.
ANSWER: c