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Which type of contract shifts the risk of cost overruns to the contractr?
Fixed-Price Incentive
What is the cost plus fixed fee contract?
A type of cost reimbursement contract that assigns minimal responsibility for costs and for which a fixed fee is negotiated. The fee provides an incentive for a subcontractor to contract for efforts that might otherwise pose too great a risk to it to assume.
How would you describe a cost-plus contract?
Often the federal government issues contracts to the private sector on a cost-plus basis; that is, all the actual costs incurred to complete a contract plus a percentage of profit is reimbursed to the contractor performing the contract.
What term refers to the cost that motivates an economic decision?
Incentive
What is a Cost-Plus-Percentage of Cost Contract?
Based on the ISM C.P.M. Study Guide, 6th edition: Listed under cost Reimbursable contracts. Cost plus percentage of cost is the most undesirable form for the purchaser, as it provides no incentive to control costs. Indeed, higher costs lead to higher profits for the supplier. In fact, Most public sector purchasing does not permit this practice.
Can you get another phone for less if you have a contract?
Yes because is if you buy a contract it is going to cost more. And if you don't have a contract it will cost more.
What is an example of a problem that can arise in a cost plus contract?
A contractor may even try to double-count a cost item by including it as a direct cost of the contract and as a part of an indirect cost pool allocated to the contract.
What is the cost or benefit that motivates an economic decision?
A. Innovation B. Incentive C. Profit
How much does the mytouch 4g cost?
$450 without a contract $100 with a contract
How much does the HTC hd7 cost?
with contract: $100 without contract: $500
Suppliers have an incentive to increase output when price is higher than cost of production .true or false?
true
How much does the Samsung Glyde cost from Verizon Wireless at full retail price without a contract?
The Glyde would cost $369.99 without a contract.
