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.

Question

Quizplus · Accepted Answer

Since both firms charge the same price for materials, the cost does not affect the decision-making process, making it an irrelevant cost.

A Purchasing Agent Has Two Potential Firms from Which to Buy