From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.
A) CPIF
B) CPFF
C) CPAF
D) CPPC

Question

Quizplus · Accepted Answer

With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. From the buyer's perspective, this is the least desirable type of contract because the supplier has no incentive to decrease costs.

From the Buyer's Perspective, the _____ Is the Least Desirable