There Is an Incentive in the Short Run for Suppliers

question 5

True/False

There is an incentive in the short run for suppliers to be inefficient in cost-based contracts because they are rewarded with higher prices.

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Definitions:

Negative Connotation

The association of a word or phrase with something negative, making it undesirable or unattractive.

Managerial Control

The process by which management ensures that resources are obtained and used effectively and efficiently in the accomplishment of an organization's objectives.

Resent

To feel bitterness or indignation at having been treated unfairly.

No Deviation

A principle in strategies or plans that emphasizes adherence to set plans without alterations.