Question

Select the correct statement from the following options:

• A. Discount is the reduction given on the marked price
• B. Discount is the reduction given on the selling price
• C. Discount is the reduction given on the profit
• D. Discount is the reduction given on the manufacture cost.

Answer 1

The correct option is A

Discount is the reduction given on the marked price

A discount% is a reduction given on the Marked Price of an article /service.
For example if an article is marked at Rs. 200 and the seller proposes a discount of 20% to a prospective buyer, it means that the buyer will need to pay 20% of 200 = Rs. 40 less on the M.P i.e Rs 200 of the article. He will have to pay 200 - 40 = Rs. 160 only. This Rs. 160 is the Selling Price for the Seller and Cost for the Buyer.