What are quantity discounts?

• A. Discounts given for ordering higher quantities of a product
• B. Discounts offered for early delivery
• C. Discounts for buying during end-of-year clearance
• D. Discounts based on total annual spend

Answer: (A)

Quantity discounts are price reductions offered when you purchase larger quantities of a product. The idea is to reward buying more at once by lowering the per-unit cost, often through tiered pricing as order size increases. This helps you save money on bulk purchases and can simplify procurement planning. The other options describe discounts based on timing (early delivery), stock status (end-of-year clearance), or total annual spend, none of which reflect a price decrease tied to the size of a single order.