A Contract Type in Which the Supplier Is Bound to the Price

question 14

Multiple Choice

A contract type in which the supplier is bound to the price of the contract is called:

• A)cost- reimbursable contract.
• B)time- and- materials contract.
• C)fixed- price contract.
• D)incentive- based contract.

---

Definitions:

Simulation Analysis

A process of modeling a real-world situation to study the effects of different parameters and anticipate possible outcomes.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them back to the present using a specific discount rate.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Sensitivity Analysis

A technique designed to analyze the effect that varied values of an independent variable exhibit on a particular dependent variable, considering certain presuppositions.