____ 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 choices.

Question

Quizplus · Accepted Answer

Cost avoidance represents the savings achieved by obtaining a lower price through effort or action, compared to a potentially higher price that could have been paid if the effort or action was not taken. This can include negotiating with suppliers, seeking out better deals, or implementing cost-saving measures.

____ Represents the Difference Between a Price Paid and a Potentially