A buyer must focus intently on determining an acceptable initial price because over the course of the long-term contract the price adjustment mechanism will use the initial price as the base for future adjustments.

Question

Quizplus · Accepted Answer

This statement is true. The initial price serves as the starting point for any price adjustments that may occur in the long-term contract. Therefore, it is important for the buyer to determine an acceptable initial price to avoid any negative impacts on future pricing.

A Buyer Must Focus Intently on Determining an Acceptable Initial