_____ Represents the Difference Between a Price Paid and a Potentially

question 61

Multiple Choice

_____ represents the difference between a price paid and a potentially higher price (which might have occurred if purchasing had not obtained the lower price through a specific effort or action) .

• A)Target cost
• B)Cost reduction
• C)Target price
• D)Cost avoidance
• E)None of these answers.

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Definitions:

Real Expenditures

Total spending on goods and services, adjusted for inflation, to reflect the true economic value of transactions.

Medicare

A federal health insurance program in the United States for people who are 65 or older, some younger individuals with disabilities, and people with End-Stage Renal Disease.

Medicaid

A social health care program for families and individuals with low income and resources, principally funded by the federal government and the states.

Government Subsidies

Financial assistance provided by the government to individuals, organizations, or industries to encourage or support certain activities or reduce their costs.