If the buyer wants to motivate the seller to manage total costs,the best type of contract is:

Name: If the buyer wants to motivate the seller to manage total costs,the best type of contract is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost-plus-incentive-fee (CPIF) contracts motivate the seller to manage total costs because they provide an incentive for cost control. The seller receives reimbursement for all allowable costs up to a set limit plus an additional fee that decreases as the costs increase, encouraging efficient cost management.

If the Buyer Wants to Motivate the Seller to Manage