With a(n)____ contract,the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.

Question

Quizplus · Accepted Answer

CPIF (Cost Plus Incentive Fee) contract is the best choice for the given scenario. In this type of contract, the buyer agrees to pay the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. The incentive bonus is based on the supplier's performance, which encourages the supplier to meet or exceed the performance targets. This type of contract is suitable when the expected costs are uncertain, and the buyer wants to incentivize the supplier to deliver the best possible outcome.

With A(n)____ Contract,the Buyer Pays the Supplier for Allowable Performance