Fixed Price Contracts Provide Low Risk for the Seller,since the Buyer

question 32

True/False

Fixed price contracts provide low risk for the seller,since the buyer will pay a fixed price,regardless of how much the project actually costs the seller.

---

Definitions:

Value Added

The increase in the value of a product or service as a result of a particular process, excluding the costs of raw materials and energy.

Intermediate Products

Intermediate products are goods that are used as inputs in the production of other goods or services, rather than being sold directly to consumers.

Investment Goods

Physical goods acquired to create value over time by being used in the production of other goods or services.

Base Year

A specific year against which economic growth, inflation, and other economic indicators are measured to assess changes over time.