Which is not one of the rules given in the textbook for selecting indexes for price adjustment clauses?
A) Use broad indexes
B) Develop a weighted index for materials in a product
C) Select labor rate indexes by type and location
D) Define energy indexes by fuel type and location
E) Analyze the past history of each index versus actual price change of the item being indexed

Question

Quizplus · Accepted Answer

The rule to "Use broad indexes" is not typically advised for selecting indexes for price adjustment clauses. Instead, more specific indexes that closely match the cost components of the contract or product are preferred to ensure accurate adjustments.

Which Is Not One of the Rules Given in the Textbook