Under a CPIF arrangement,an incentive applies over part of the range of cost outcomes.The fee structure resembles a cost plus fixed fee contract at both the low-cost and high-cost ends of the range.

Question

Quizplus · Accepted Answer

Under a CPIF arrangement, there is an incentive fee applied over a part of the range of cost outcomes, which means that the fee structure resembles a cost plus fixed fee contract at both the low-cost and high-cost ends of the range. Therefore, the statement is true.

Under a CPIF Arrangement,an Incentive Applies Over Part of the Range