Which term completes the sentence: Builder discounts that are properly filed and justified in the rate or fee filings are ______, however volume discounts are not permissible.

Which term completes the sentence: Builder discounts that are properly filed and justified in the rate or fee filings are ______, however volume discounts are not permissible.

• A. DISCOUNTS
• B. FILING
• C. PERMISSIBLE
• D. VOLUME

Answer: (C)

This question tests understanding of the word that means allowed under the rules. Builder discounts that are properly filed and justified in the rate or fee filings are permissible, which says these discounts are allowed when they’re properly documented. The phrase “not permissible” in the second part shows the contrast you’re meant to recognize: volume discounts aren’t allowed. The other options don’t fit the sentence smoothly: a repetition of discounts doesn’t change the meaning; filing would break the sentence’s grammar; volume would make the sentence confusing since it’s already mentioning volume discounts as not allowed. So the word that best completes the thought is permissible, signaling that properly filed builder discounts are allowed under the regulations.

This question tests understanding of the word that means allowed under the rules. Builder discounts that are properly filed and justified in the rate or fee filings are permissible, which says these discounts are allowed when they’re properly documented. The phrase “not permissible” in the second part shows the contrast you’re meant to recognize: volume discounts aren’t allowed. The other options don’t fit the sentence smoothly: a repetition of discounts doesn’t change the meaning; filing would break the sentence’s grammar; volume would make the sentence confusing since it’s already mentioning volume discounts as not allowed. So the word that best completes the thought is permissible, signaling that properly filed builder discounts are allowed under the regulations.