4.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.
(B) The rate of inflation has varied considerably over the past twenty years.
(C)The contractual price will be greatly affected by the cost of materials used for the products.
(D) Many taxpayers question the amount of money the government spends on military contracts.
(E) The pricing method based on historical costing might not encourage the development of innovative weapons.
这个题目为什么是选A,而不是C,看了解释,还是不明白。不明白A中的那个Funds跟题目有什么关系,题目里面没有提到任何的Funds。
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