alleryStart learning →Why might a buyer pay more when allowed to defer payment?
ADeferred goods are of better quality
BPayment timing is a term that affects price
CDeferment makes the goods heavier
DDeferment lowers the applicable tax rate
Answer & Solution
Correct answer: B. Payment timing is a term that affects price
Terms such as payment timing carry value, so a buyer who gets credit tends to accept a higher price.
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