The Potential Benefit of One Alternative That Is Lost by Choosing

question 131

Multiple Choice

The potential benefit of one alternative that is lost by choosing another is known as a(n) :

• A) Alternative cost
• B) Sunk cost
• C) Out-of-pocket cost
• D) Differential cost
• E) Opportunity cost

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Definitions:

Available Information

Refers to data that is readily accessible for use in decision-making and operations.

Supplier Development

The process of working with suppliers to improve their performance and capabilities for mutual benefit.

Buying Organization

An entity that purchases goods and services for its use, which can include businesses, government bodies, institutions, and non-profits.

Request for Information (RFI)

is a standard business process whose purpose is to collect written information about the capabilities of various suppliers.