CISSP-ISSMP · Question #171
CISSP-ISSMP Question #171: Real Exam Question with Answer & Explanation
The correct answer is B: Cost Plus Fixed Fee Contracts. The Cost Plus Fixed Fee Contract (CPFF) is a type of contract where seller receives a fixed fee payment calculated as a percentage of the initial estimated project costs. Fee is paid only for the complete work and it does not change due to the performance of the seller. In the CP
Question
In which of the following contract types, the seller is reimbursed for all allowable costs for performing the contract work and receives a fixed fee payment which is calculated as a percentage of the initial estimated project costs?
Options
- AFirm Fixed Price Contracts
- BCost Plus Fixed Fee Contracts
- CFixed Price Incentive Fee Contracts
- DCost Plus Incentive Fee Contracts
Explanation
The Cost Plus Fixed Fee Contract (CPFF) is a type of contract where seller receives a fixed fee payment calculated as a percentage of the initial estimated project costs. Fee is paid only for the complete work and it does not change due to the performance of the seller. In the CPFF contract, the seller is reimbursed for all allowable costs for performing the contract work. Answer options D, A, and C are incorrect. The description does not match with these types of contracts. Edition, ISBN.9781933890517, Section 12.1.2.3.
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