Define: Trade Discount

Business, Legal & Accounting Glossary

Definition: Trade Discount


Quick Summary of Trade Discount


A reduction from the sales list price that a business might offer to some of its customers. The amount of the trade discount will be shown on the face of the invoice as a deduction from the list price. A Settlement Discount is different.



What is the dictionary definition of Trade Discount?

Dictionary Definition


A reduction in the list price of goods; for example: a discount given to customers who make purchases in bulk.


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Synonyms For Trade Discount


setoff, premium, agio, price cut, tare


Cite Term


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https://payrollheaven.com/define/trade-discount/
Modern Language Association (MLA):
Trade Discount. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/trade-discount/.
Chicago Manual of Style (CMS):
Trade Discount. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/trade-discount/ (accessed: April 07, 2020).
American Psychological Association (APA):
Trade Discount. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/trade-discount/

Definition Sources


Definitions for Trade Discount are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020