CAPM (Certified Associate in Project Management) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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

Start Multiple Choice Practice Test
Start Flash Cards

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.

Which type of fixed-price contract is most common and has the price set at the outset without being subject to change?

  1. Firm fixed-price contracts

  2. Fixed-price incentive fee contracts

  3. Fixed price with economic price adjustment contracts

  4. Cost Plus Fixed Fee contracts

The correct answer is: Firm fixed-price contracts

A firm fixed-price contract is the most common and has the price set at the outset without being subject to change. This is different from fixed-price incentive fee contracts, which offer additional bonuses or penalties based on performance. Fixed price with economic price adjustment contracts allow for the price to be adjusted based on external factors, such as inflation. Cost Plus Fixed Fee contracts involve the contractor being reimbursed for allowable costs plus a fixed fee, so the price in this type of contract is not initially set. Therefore, A is the correct answer.

More Questions Like This