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Learn to recognize the common flaws. This argument exhibits a language shift.
The premise is about how the contractors protect their profits. The conclusion is that the method used is economically sound.
The argument assumes that these two ideas are connected: that if contractors are able to protect their profits, then the method used is economically sound. The correct answer will break the link between these two ideas: it will show that, even though the pricing method enables the contractors to protect their profits, it is NOT a method that is economically sound. Answer choice A does just what we need: The government might continue to pay for past inefficient use of funds. Since historical costing guarantees that the contractors will make a profit, the contractors have no incentive to use government funds efficiently, resulting in a pricing method that enables the contractors to protect their profits but is NOT economically sound. |
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