Which term describes price in effect at time of shipment?

Which term describes price in effect at time of shipment?

• A. Price In Effect At Time Of Shipment
• B. Time And Materials
• C. Boilerplate
• D. Fixed Price Incentive

Answer: (A)

The price in effect at the time of shipment is the rate that actually applies when the goods are shipped, reflecting any authorized adjustments that occur between the order date and the shipment date. This concept matters because prices can change due to market conditions or contract clauses, so billing is based on the price that is valid at shipment, not necessarily the price quoted earlier. The other ideas don’t describe this specific timing of price: Time and materials refers to billing based on actual labor hours and materials used, not a shipment-date price for the whole delivery. Boilerplate is just standard contract language, not a pricing rule. A fixed price incentive is a contract pricing arrangement with incentives tied to performance and target costs, but it doesn’t define the price that applies specifically at shipment time.

The price in effect at the time of shipment is the rate that actually applies when the goods are shipped, reflecting any authorized adjustments that occur between the order date and the shipment date. This concept matters because prices can change due to market conditions or contract clauses, so billing is based on the price that is valid at shipment, not necessarily the price quoted earlier.

The other ideas don’t describe this specific timing of price: Time and materials refers to billing based on actual labor hours and materials used, not a shipment-date price for the whole delivery. Boilerplate is just standard contract language, not a pricing rule. A fixed price incentive is a contract pricing arrangement with incentives tied to performance and target costs, but it doesn’t define the price that applies specifically at shipment time.