A Purchasing Agent Has Two Potential Firms from Which to Buy

question 74

Multiple Choice

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

• A)an irrelevant cost
• B)a relevant cost
• C)a sunk cost
• D)an opportunity cost

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Definitions:

Annual Income

The total amount of income earned in one fiscal year before deductions.

Professional Groups

Organizations or associations comprised of individuals from the same profession or occupational field, often formed for advocacy, networking, and professional development purposes.

Years of Experience

The total amount of time an individual has spent in a particular professional role or industry.

Significance Level

A threshold set by the researcher to determine the maximum probability of wrongly rejecting the null hypothesis, commonly denoted as alpha (α) and often set at 0.05 or 5%.