Which of the following contract types is most susceptible to inappropriate cost allocations?
A) Cost-based
B) Fixed-price
C) Based on activities undertaken
D) Dual-rate

Question

Quizplus · Accepted Answer

Cost-based contracts rely heavily on accurate cost allocations and cost accounting. Without proper controls and oversight, there is a risk of inappropriate cost allocations which can lead to inaccurate reporting and payment disputes between parties.

Which of the Following Contract Types Is Most Susceptible to Inappropriate