A Purchasing Agent Has Two Potential Firms from Which to Buy

question 64

Multiple Choice

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

• A)irrelevant cost.
• B)relevant cost.
• C)sunk cost.
• D)opportunity cost.

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Definitions:

Moral Development

The process by which individuals develop their understanding of right and wrong, shaping their behavior and decision-making.

Ethical Standards

The principles and values that guide the behavior and decision-making process of an individual or organization, often reflecting societal norms of right and wrong.

Formal Policies

Officially established rules or guidelines within an organization that dictate certain actions or behaviors, designed to achieve consistency and compliance.

Preconventional

A level of moral reasoning in Kohlberg's theory where behavior is influenced by external rewards and punishments.