In which of the following kinds of contracts is the actual, final cost of the project unknown until after the project is completed (circle all that apply):
A) cost plus fixed fee
B) fixed price
C) cost plus incentive fee
D) none of these

Question

Quizplus · Accepted Answer

In both "cost plus fixed fee" and "cost plus incentive fee" contracts, the actual, final cost of the project is not known until the project is completed. These contracts involve reimbursing the contractor for all allowable or defined costs, plus an additional fee that could be fixed or an incentive, making the final cost variable and unknown until completion.

In Which of the Following Kinds of Contracts Is the Actual