The cost of giving up a cash discount on a credit purchase is
A. added on to the price of the goods.
B. deducted from the price of the goods.
C. the implied interest rate paid in order to delay payment for an additional number of days.
D. the true purchase price of the goods.
Answer:C
The cost of giving up a cash discount on a credit purchase is
A. added on to the price of the goods. B. deducted from the price of the goods. C. the implied interest rate paid in order to delay payment for an additional number of days. D. the true purchase price of the goods.