_____ 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 the above.

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Definitions:

Custom-Made

Specifically designed and made to an individual's specifications or requirements; tailor-made.

Enforceable Agreement

A legally binding contract that can be upheld and compelled by law in a court of justice.

Earnest

Serious in intention, purpose, or effort; sincerely zealous.