The Difference in Cost Between Two Alternatives,such as to Make

question 43

Multiple Choice

The difference in cost between two alternatives,such as to make a component part of a final product versus buying the part from an outside supplier is called:

• A)Variable cost.
• B)Differential cost.
• C)Product cost.
• D)Indirect cost.

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Definitions:

Mistake Of Fact

A mistake of fact refers to a misunderstanding or incorrect belief about a fact relevant to a contract or a legal proceeding, affecting the decisions made by the parties involved.

Contract

A binding pact between parties that has legal force and can be upheld in court.

Accept

To agree to receive or undertake something offered.

Offer

A proposal by one party to another to enter into a legal agreement, constituting one of the essential elements of a contract.