John's Ice Cream Company purchases milk and cream from a local dairy farm. The dairy farm's standard pricing policy is 60 days to receive full payment. However, they offer a 5 percent discount on the total purchase price if John's Ice Cream Company pays the full amount (less discount) within 30 days. This is an example of offering:

John's Ice Cream Company purchases milk and cream from a local dairy farm. The dairy farm's standard pricing policy is 60 days to receive full payment. However, they offer a 5 percent discount on the total purchase price if John's Ice Cream Company pays the full amount (less discount) within 30 days. This is an example of offering:



A.

quantity discounts.


B.

flexible pricing policies.


C.

promotional allowances.


D.

cash discounts.



Answer: D


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