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Manager
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The price the government pays for standard weapons purchased [#permalink]
 03 Apr 2007, 19:42
Question Stats:
0% (00:00) correct
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The price the government pays for standard weapons purchased from military contractors is determined by a pricing method called “historical costing.â€
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GMAT Club Legend
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Ans:A.
Since historical pricing adds on to the previous year's contractual price, the governement will pay if there was an inefficient use of funds in the past - i.e. if inefficient use led to higher contractual price paid out previously, then historical pricing applied today will include that amount of improperly managed fund paid out.
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A.
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The answer is A.
ywilfred.... The explanation is apt.
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