The price the government pays for standard weapons purchased : GMAT Critical Reasoning (CR)
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# The price the government pays for standard weapons purchased

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Director
Joined: 20 Apr 2005
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The price the government pays for standard weapons purchased [#permalink]

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25 Apr 2005, 16:13
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14. The price the government pays for standard weapons purchased from military contractors is determined by a pricing method called â€œhistorical costing.â€
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Director
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25 Apr 2005, 17:05
Another A....i recall this practice question and the OA was A
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25 Apr 2005, 17:45
I vote for (A) as well.

If the govt started paying in installments then the contractors will each year increase the cost of the equipment yet to be paid. This is similar to credit card debt.
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26 Apr 2005, 14:45
The OA is A.
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