In a Fixed Price Contract with Escalation,all Contractual Price Changes

question 67

True/False

In a fixed price contract with escalation,all contractual price changes should be keyed to a third-party price index,preferably to a well-established,widely published index.

---

Definitions:

APS

Average Propensity to Save, which measures the proportion of income that is saved rather than spent.

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.