What does a reduction in price refer to?

A reduction in price signifies a discount, which is a deduction from the original price of a product or service. Discounts are often offered to encourage sales, reward loyalty, or clear inventory. In the context of funeral service education and practice, understanding discounts is essential, as they can affect pricing strategies and consumer decisions.

When comparing this with the other choices, a markup refers to the amount added to the cost price of goods, making it the opposite of a reduction in price. Similarly, a markup price indicates the selling price determined after a markup has been applied, which again is not a reduction. An increase in cost directly contradicts the concept of reducing price, as it signifies a rise in the expenses associated with providing a service or product rather than a decrease. Therefore, the only option that accurately reflects a decrease in price is the discount.