Question 8
- (i) COD;
- (ii) CIF;
(iii) FOB;
(iv) E. and O. E.
- The sale of consumer goods costing N100,000 attracts a cash discount
of 7½% and a quantity discount of 5%.
Observation
Most candidates performed poorly in this question. The procedure for calculating quantity and cash discount is as follows:
- Calculate the quantity discount first;
- Deduct the quantity discount from the invoice price;
- Then calculate the cash discount;
- Deduct the values of the two discounts to get the net amount payable.