21) The volume packs so typical of the products sold at Costco demonstrate multiple-unit pricing. A) True B) False 22) The geographic pricing arrangement of F.O.B. Destination sees the buyer paying for the costs of the freight. A) True B) False 23) A supplier pays a retailer a shelving allowance for the purpose of securing shelf space. A) True B) False 24) A manufacturer that keeps a record of customer volume and issues cheques at a later date to cover allowances earned over the term of the offer is allowing a discount on the basis of a bill-back. A) True B) False 25) "3/10, net 30" means that a customer whose payment is received 3 to 10 days after reception of the invoice will get a 30% discount. A) True B) False 26) The buying committee turned to the sales manager of a new line of cereals and stated that it would cost the company $50,000 to get the products listed and placed on their store shelves. The buying committee is asking for a slotting allowance. A) True B) False 27) A drug store gives a deodorant manufacturer's island display a prominent location. The manufacturer will probably give the drug store a discount called a performance allowance. A) True B) False 28) Buying Christmas merchandise in July takes advantage of seasonal discounts. A) True B) False 29) A supplier who wants to persuade a customer to buy a more sophisticated photocopier can do so without affecting the list price by offering a generous trade-in allowance. A) True B) False 30) Quantity discounts are illegal because smaller customers are unfairly treated. A) True B) False
21) The volume packs so typical of the products sold at Costco demonstrate multiple-unit pricing.
A) True
B) False
22) The geographic pricing arrangement of F.O.B. Destination sees the buyer paying for the costs of the freight.
A) True
B) False
23) A supplier pays a retailer a shelving allowance for the purpose of securing shelf space.
A) True
B) False
24) A manufacturer that keeps a record of customer volume and issues cheques at a later date to cover allowances earned over the term of the offer is allowing a discount on the basis of a bill-back.
A) True
B) False
25) "3/10, net 30" means that a customer whose payment is received 3 to 10 days after reception of the invoice will get a 30% discount.
A) True
B) False
26) The buying committee turned to the sales manager of a new line of cereals and stated that it would cost the company $50,000 to get the products listed and placed on their store shelves. The buying committee is asking for a slotting allowance.
A) True
B) False
27) A drug store gives a deodorant manufacturer's island display a prominent location. The manufacturer will probably give the drug store a discount called a performance allowance.
A) True
B) False
28) Buying Christmas merchandise in July takes advantage of seasonal discounts.
A) True
B) False
29) A supplier who wants to persuade a customer to buy a more sophisticated photocopier can do so without affecting the list price by offering a generous trade-in allowance.
A) True
B) False
30) Quantity discounts are illegal because smaller customers are unfairly treated.
A) True
B) False
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