What Pricing Strategy Did the National Aeronautics and Space Administration

question 312

Multiple Choice

What pricing strategy did the National Aeronautics and Space Administration (NASA) use to pay Lockheed Martin for the Orion lunar spacecraft?

• A) cost-plus-percentage-of-cost pricing
• B) experience-curve pricing
• C) standard markup pricing
• D) yield management pricing
• E) cost-plus-fixed-fee pricing

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Definitions:

Unrealized Holding Loss

A decrease in the value of an investment that has not yet been sold for cash.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period.

Unrealized Loss

A reduction in value experienced by retaining an asset whose price has fallen, but has not been liquidated yet.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.