28. Discount, Rebate, Commission

 

DISCOUNT, REBATE, COMMISSION

 Learn and Remember

         Marked price (M.P.) or M.R.P. (Maximum Retail Price): A certain price is tagged to the article for sale. This price is called M.P. or M.R.P.

1. Discount : The discount is always given on M.P. or M.R.P. the difference between M.P. and S.P. is called discount. Discount is always expressed in percentage.

Discount Rate of discount = Discount % =  ^Discount ⁄ _M.P. x  100

Discount =  ^{Rate of Discount} ⁄ ₁₀₀

 2. Rebate : Rebate is a sort of discount given under certain conditions by Government or recognized institutions which is u

p sum or in the form of some per cent on printed price.

3. Commission agent and commission: A person who brings buyers and sellers in contact with each other is called a middle man or commission agent.

The payment received by the agent for services rendered is called commission.

The commission may be taken from buyer or seller or from both.

The commission is always levied on selling price. The rate of commission is expressed in percentage