_____ 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 these answers.

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, target cost, and target price all relate to different aspects of cost management and do not specifically address the difference in price paid and potentially higher price.

_____ Represents the Difference Between a Price Paid and a Potentially