What type of discount applies to orders that are placed over an extended period of time?

A cumulative discount is applied to orders that are placed over an extended period of time, encouraging customers to continue purchasing from a supplier. This type of discount rewards customers for their loyalty and ongoing business by calculating the total amount of purchases over a specific time frame. It incentivizes larger cumulative purchases rather than single, large transactions, which can help businesses manage inventory and sales more effectively.

In contrast, seasonal discounts are typically tied to specific times of the year or seasons and encourage sales of seasonal products. Volume discounts are specifically related to the quantity bought in a single transaction, offering lower prices based on larger quantities ordered at once. Promotional discounts are generally temporary price reductions used to boost sales of particular items or ranges, but they do not apply to long-term order placement.

Thus, the cumulative discount structure best suits the scenario where purchases are made over an extended period, aligning with the goal of encouraging ongoing purchasing behaviors rather than just one-time transactions.