A purchasing agent has two potential firms from which to buy materials for production.If both firms charge the same price,what is the material cost?

Question

Quizplus · Accepted Answer

Material cost in this scenario is an irrelevant cost because it remains the same regardless of which firm the purchasing agent chooses. Since both firms charge the same price, the cost does not affect the decision-making process.

A Purchasing Agent Has Two Potential Firms from Which to Buy