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.

Apply core critical thinking skills to real-world issues.

Recognize how critical thinking skills support and enhance each other.

Understand the importance of cognitive maturity in acknowledging the complexity of real-world issues.

Identify and exemplify critical thinking habits of mind such as tolerance and open-mindedness.

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Definitions:

Lowest Terms

The expression of a fraction in its simplest form, where the numerator and denominator are as small as possible.

Ratio

A mathematical way to compare two quantities, indicating how many times one value contains or is contained within the other.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible values.

Ratio

A mathematical expression that compares two numbers by division, indicating how much of one value there is compared to another.