What type of discount reduces the amount due for prompt payment?

The correct choice is a prompt payment discount. This type of discount specifically incentivizes customers to pay their bills quickly, typically within a specified timeframe. By offering this discount, businesses encourage timely payments, which can improve cash flow and reduce the risk of late payments or defaults.

The prompt payment discount often reduces the total amount due, providing a financial benefit to the customer for meeting the payment terms. This practice is common in various industries, including the mortuary science field, where timely payment can be essential for maintaining operation efficiency and financial health.

The other options, while related to financial charges, do not specifically refer to this type of discount aimed at rewarding prompt payments.