When a company requires the customers to pay today's price and all or part of any inflation increase that takes place before delivery, it is known as ________.
A) special-customer pricing
B) an escalator clause
C) delayed quotation pricing
D) unbundling
E) time pricing

Question

Quizplus · Accepted Answer

The practice of requiring customers to pay today's price and all or part of any inflation increase that takes place before delivery is known as an escalator clause. This is a way for companies to protect themselves against inflation and ensure that they are able to make a profit on the sale.

When a Company Requires the Customers to Pay Today's Price