Fixed fee contracts are desirable when there is little uncertainty regarding the output.

Question

Quizplus · Accepted Answer

Fixed fee contracts are more suitable when there is little uncertainty regarding the output, as it allows for greater predictability and stability in pricing and budgeting. On the other hand, contracts with variable fees or cost-plus arrangements may be more appropriate when there is greater uncertainty or variability in the project or deliverables.

Fixed Fee Contracts Are Desirable When There Is Little Uncertainty