A firm is contractually able to raise an item's price to reflect its rising costs in those items' essential ingredients without changing printed list prices with a(n) ___ clause.
A) surcharge
B) escalator
C) markup
D) price-ceiling

Question

Quizplus · Accepted Answer

An escalator clause in a contract allows a company to adjust prices based on changes in costs, such as the cost of essential ingredients, without altering the initially printed list prices.

A Firm Is Contractually Able to Raise an Item's Price