The two basic types of purchasing contracts are:
A)fixed-price and cost-based.
B)bid-rigged and cost-plus.
C)cost-zero and fixed-variable.
D)fixed-quantity and variable-cost.

Question

Quizplus · Accepted Answer

Fixed-price contracts involve a set price for a specific product or service, while cost-based contracts involve payment based on the actual costs incurred during the process. These are the two most common types of purchasing contracts used in business. Option B refers to illegal and unethical practices, option C is not a recognized type of contract, and option D is not a commonly used terminology in purchasing contracts.

The Two Basic Types of Purchasing Contracts Are