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PMI-ACP · Question #556

PMI-ACP Question #556: Real Exam Question with Answer & Explanation

The correct answer is B: False. False — fixed price contracts are possible in Agile. Several contract models accommodate Agile's adaptive nature while maintaining cost certainty. Common approaches include fixed price per iteration (each sprint has a fixed cost), fixed price with variable scope (cost is fixed

Submitted by diego_uy· Apr 18, 2026Value-driven Delivery

Question

It is not possible to have a fixed price contract in Agile.

Options

  • ATrue
  • BFalse

Explanation

False — fixed price contracts are possible in Agile. Several contract models accommodate Agile's adaptive nature while maintaining cost certainty. Common approaches include fixed price per iteration (each sprint has a fixed cost), fixed price with variable scope (cost is fixed but lower-priority features can be deferred), and capped time-and-materials. The key is negotiating flexibility in scope rather than trying to fix scope, cost, and time simultaneously — the classic Agile 'iron triangle' trade-off.

Topics

#Agile Contracts#Fixed Price Contracts#Contracting Models#Procurement

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