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CAPM · Question #108

CAPM Question #108: Real Exam Question with Answer & Explanation

The correct answer is C: Cost plus fixed fee (CPFF). See the full explanation below for the reasoning.

Predictive, Plan-Based Methodologies

Question

A firm contracted an event management company to conduct the annual sales day event. The agreement states that the event management company will charge the firm for the actuals and receive 8% of the total cost. What type of contract is this?

Options

  • ATime and material (T&M)
  • BFixed price incentive fee (FPIF)
  • CCost plus fixed fee (CPFF)
  • DCost plus award fee (CPAF)

Topics

#Contract types#Cost-reimbursable contracts#Procurement management#CPFF

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