It is currently 23 Nov 2017, 02:39

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The price the government pays for standard weapons purchased

Author Message
Manager
Joined: 22 Feb 2007
Posts: 66

Kudos [?]: 1 [0], given: 0

The price the government pays for standard weapons purchased [#permalink]

### Show Tags

03 Apr 2007, 19:42
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

The price the government pays for standard weapons purchased from military contractors is determined by a pricing method called â€œhistorical costing.â€

Kudos [?]: 1 [0], given: 0

GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5032

Kudos [?]: 453 [0], given: 0

Location: Singapore

### Show Tags

03 Apr 2007, 19:52
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.

Kudos [?]: 453 [0], given: 0

Manager
Joined: 26 Feb 2007
Posts: 110

Kudos [?]: 2 [0], given: 0

### Show Tags

03 Apr 2007, 21:06
A.

Kudos [?]: 2 [0], given: 0

Manager
Joined: 20 Nov 2006
Posts: 213

Kudos [?]: 18 [0], given: 0

### Show Tags

03 Apr 2007, 21:16

ywilfred.... The explanation is apt.

Kudos [?]: 18 [0], given: 0

03 Apr 2007, 21:16
Display posts from previous: Sort by

# The price the government pays for standard weapons purchased

Moderators: GMATNinjaTwo, GMATNinja

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.