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:

Running Conditions

The operational state of a machine, vehicle, or system under normal, intended use.

Engine Rpm

Engine revolutions per minute (RPM) measures how many times the engine's crankshaft completes a full rotation each minute, indicating the engine's operational speed.

Allison Transmission

A brand known for producing automatic transmissions for heavy-duty vehicles, offering durability and reliability in various applications.

First Speed Clutch

A component in a transmission system that engages to allow the vehicle to operate in its lowest gear.