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Requirements and outputs contracts are legitimate, reasonable and quantifiable when based on: A. Prior course of...

Requirements and outputs contracts are legitimate, reasonable and quantifiable when based on:

A. Prior course of dealing between the parties

B. Actual current levels of production rather than past estimations

C. The all or nothing rule, resulting in all production servicing one vendor

D. The lower of cost or market

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Answer #1

Option B

When requirements and output contracts are done based on the actual levels of production, then it would be reasonable to quantify and justify the contracts.

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