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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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