trade discount


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Related to trade discount: cash discount

Trade Discount

The amount by which a company reduces its price per unit when selling units (usually in large quantities) to a reseller. Trade discounts exist to encourage large orders, which, while they may reduce profit margin, increase revenue and therefore raw profit. They also tend to increase the reseller's profit margin, which may encourage repeat business with the supplier.

trade discount

see QUANTITY DISCOUNT.

trade discount

see DISCOUNT.
References in periodicals archive ?
It was not possible to identify the purpose of the trade discount for this analysis.
Memo 1996-131, holding that Sun's purchaser must treat the redemption of the warrants as a trade discount that reduced its basis in the goods.
The chief counsel concluded that defective merchandise allowances were akin to trade discounts and were properly accounted for as reductions to the inventory cost rather than as part of sales receipts, despite the fact that the allowances were provided instead of actual merchandise returns and despite the fact that the allowances were characterized as compensation for the defective goods.
Taxpayers have argued that those volume-based advertising allowances should be treated as reductions in the purchase price of the inventory per the trade discount rules discussed below.
In Westpac Pacific Food, (1) the Ninth Circuit, reversing the Tax Court, found that a repayment obligation prevented an advance trade discount from creating an accession to wealth and therefore concluded that it did not constitute gross income when received.
When it came to paying for it, a young Asian woman with Asiedu produced a "Sally's Card" and she gave them the trade discount which reduced the price per litre from pounds 2.
Trade discounts typically give 1% to 2% off the total amount due if customers pay in 10 days.
Additionally, Poems About Anything And Everything can be ordered by retailers or wholesalers for the maximum trade discount price set by the author in quantities of ten or more from the Outskirts Press Direct bookstore at www.
Areas of specialization include LIFO accounting, construction audit and cost control services, cost segregation and cash and trade discount consulting.
Additionally, Lamby can be ordered by retailers or wholesalers for the maximum trade discount price set by the author in quantities of ten or more from the Outskirts Press Direct bookstore at www.
Additionally, The Dark is in the Light can be ordered by retailers or wholesalers for the maximum trade discount price set by the author in quantities of ten or more from the Outskirts Press Direct bookstore at www.
84-41, a trade discount is a vendor reduction to the purchase price, which varies depending on the volume or quantity purchased.