When is it appropriate to use price analysis?

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Price analysis is a method used to evaluate price reasonableness without delving into detailed cost and pricing data. It typically involves comparing proposed prices with benchmarks, historical prices, or market conditions to ensure that the proposed prices are fair and competitive. Using price analysis is particularly appropriate when there is a need to verify the overall price of a proposal, but detailed cost data are not available, making option C the correct choice.

In scenarios where detailed cost data are present and certified, a more thorough cost analysis would be appropriate, which makes that choice less suitable. Option A, suggesting the utilization of price analysis for all proposals regardless of data availability, does not align with the specific circumstances under which price analysis is most effective. Lastly, while technical proposals may complicate evaluations, they do not inherently necessitate price analysis if detailed cost breakdowns are available, which would be better suited for a cost analysis approach.

Thus, the context of needing to ascertain price reasonableness without complete cost details emphasizes the validity of option C as the correct choice in the applicable situations.

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