BCS-ISEB
ISEB-PM1 · Question #78
ISEB-PM1 Question #78: Real Exam Question with Answer & Explanation
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Question
The sponsor is worried about the seller deriving extra profit on the cost plus fixed fee (CPFF) contract. Each month the sponsor requires the project manager to submit CPI calculations and an analysis of the cost to complete. The project manager explains to the sponsor that extra profits should NOT be a worry on this project because:
Options
- AThe team is making sure the seller does not cut scope.
- BAll costs invoiced are being audited.
- CThere can only be a maximum 10 percent increase if there is an unexpected cost overrun.
- DThe fee is only received by the seller when the project is completed.
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