All of the alternatives listed below are ways to safeguard against inflation EXCEPT:
A) modify components, ingredients, parts and/or packaging materials.
B) source materials from low-cost suppliers.
C) lengthen credit terms.
D) include escalator clauses in long-term contracts.
E) quote prices in a stable currency.

Question

Quizplus · Accepted Answer

Lengthening credit terms does not safeguard against inflation as it only changes the payment schedule but does not address the underlying issue of inflation. The other alternatives listed address inflation by either reducing costs (B), adjusting prices (A and E), or including clauses to account for future inflation (D).

All of the Alternatives Listed Below Are Ways to Safeguard