Which of the following should be avoided in a contract if cost certainty is important?
A) Cost-of-living clauses
B) Gainsharing clauses
C) Profit sharing plans
D) Piece-rate pay plans

Question

Quizplus · Accepted Answer

Cost-of-living clauses allow for adjustments in payment based on changes in inflation or other economic factors, which can make it more difficult to ensure cost certainty in a contract. The other options (B, C, D) relate to incentive-based payment plans, which may not necessarily impact cost certainty.

Which of the Following Should Be Avoided in a Contract