CAPM (Certified Associate in Project Management) Practice Exam

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Study for the CAPM Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In which type of fixed-price contract can the final contract price be adjusted based on conditions such as inflation?

Firm fixed-price contracts
Fixed price with economic price adjustment contracts
Fixed-price incentive fee contracts
Cost Plus Incentive Fee contracts

The correct answer is: Fixed price with economic price adjustment contracts

Fixed price with economic price adjustment contracts allow for adjustments in the final contract price based on certain conditions such as inflation. This option is different from the other choices. Firm fixed-price contracts have a set price that does not change, while fixed-price incentive fee contracts have a set price with an additional incentive fee for meeting predetermined targets. Cost Plus Incentive Fee contracts are cost reimbursable contracts that include an additional fee for meeting targets. These options do not allow for adjustments based on inflation or other conditions. So, while all of the options involve fixed-price contracts, only option B specifically allows for price adjustments based on certain conditions.