In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.Group of answer choicesCost plus incentive fee (CPIF)Fixed-price incentive fee (FPIF)Cost plus percentage of costs (CPPC)Firm-fixed price (FFP)

From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.Group of answer choicesCost plus award fee (CPAF)Cost plus incentive fee (CPIF)Cost plus percentage of costs (CPPC)Cost plus fixed fee (CPFF)

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.Group of answer choicesCost-reimbursableFixed-price incentive feeLump sumFirm-fixed-price

In a principal/agent relationship for contracts with customers, the pre-determined fee or commission for services is earned by the:Group of answer choices

For make-or-buy decisions, relevant costs include:Group of answer choicesdifferential costs plus fixed costsincremental costs plus differential costsincremental costs plus sunk costsincremental costs plus opportunity costs

Question 461 ptsCosts that vary depending on the number of units produced or sold are referred to as fixed costs.Group of answer choicesfalsetrue PreviousNext