(OG)30.
The price the government pays for standard weapons purchased from military contractors is determined by a pricing method called “historical costing.” Historical costing allows contractors to protect their profits by adding a percentage increase, based on the current rate of inflation, to the previous year’s contractual price.
Which of the following statements, if true, is the best basis for a criticism of historical costing as an economically sound pricing method for military contracts?
A. The government might continue to pay for past inefficient use of funds. (inefficient use of funds是什么意思？)
C. The contractual price will be greatly affected by the cost of materials used for the products.（为什么错？答案解释中说成本是通胀的反映怎么理解？）
