A Purchasing Agent Has Two Potential Firms from Which to Buy

question 64

Multiple Choice

A purchasing agent has two potential firms from which to buy materials for production. If both firms charge the same price, the material cost is a(n)

• A)irrelevant cost.
• B)relevant cost.
• C)sunk cost.
• D)opportunity cost.

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Definitions:

External

Relating to, situated on, or connected with the outside or an outer part.

Orbital Frontal Cortex

A region of the brain located in the frontal lobes that is involved in the complex process of decision making and moderating social behavior.

Ventromedial Cortex

A region of the brain associated with decision-making, emotional responses, and the processing of reward and fear.

Anterior Cingulate Cortex

A region of the brain involved in functions such as decision-making, emotion, and impulse control.