_____ represents the difference between a price paid and a potentially higher price (which might have occurred if purchasing had not obtained the lower price through a specific effort or action).
A) Target cost
B) Cost reduction
C) Target price
D) Cost avoidance
E) None of the above.

Question

Quizplus · Accepted Answer

Cost avoidance represents the difference between a price paid and a potentially higher price that might have occurred if purchasing had not obtained the lower price through a specific effort or action. Cost reduction and target cost refer to measures taken to decrease costs, while target price is the market price a company aims for when setting prices for its products. Therefore, the correct answer is D) Cost avoidance.

_____ Represents the Difference Between a Price Paid and a Potentially