With a pure ____ contract,allowable costs are shared between the parties on a predetermined percentage basis.
A) cost-sharing
B) time and materials
C) fixed-price with incentives
D) cost plus incentive fee
E) fixed-price with redetermination

Question

Quizplus · Accepted Answer

In a pure cost-sharing contract, the parties agree to share the allowable costs on a predetermined percentage basis. This type of contract is commonly used in research and development projects where the risks and rewards are shared between the parties. The other contract types listed involve different methods of determining the final contract price and do not involve cost-sharing in the same way.

With a Pure ____ Contract,allowable Costs Are Shared Between the Parties