DECA Business Administration Core Exam 2025 – 400 Free Practice Questions to Pass the Exam

The correct term that describes a part of the price a customer pays for a good or service, usually offered by the manufacturer, is a rebate. A rebate is a partial refund to someone who has paid too much for tax, rent, or a utility. In business, manufacturers often provide rebates as a sales incentive to encourage customers to buy their products. When a customer purchases a product, they may pay the full asking price but later receive a portion of that amount back, which effectively reduces the overall cost to them.

In contrast, the other options describe different strategies or components in pricing but do not fit the definition of a rebate. A discount is a reduction in the price of a product offered at the point of sale, rather than a subsequent refund. Markup refers to the amount added to the cost price of goods to cover overhead and profit, rather than a refund or reduction to the customer. Promotion generally refers to marketing strategies aimed at increasing awareness or sales of a product, rather than a financial adjustment in the price the customer pays.