____ involve payment to the supplier for direct and indirect actual costs.
A)CPFF contracts
B)Lump sum contracts
C)Cost-reimbursable contracts
D)Time and material contracts

Question

Quizplus · Accepted Answer

Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs, including overhead and profit. In these contracts, the buyer reimburses the supplier for all allowable costs incurred in performing the work, plus a fee usually representing profit. The types of cost-reimbursable contracts include cost plus fixed fee (CPFF), cost plus incentive fee (CPIF), and cost plus award fee (CPAF).

____ Involve Payment to the Supplier for Direct and Indirect