What Is the Fundamental Difference Between a Fixed-Price and a Cost-Plus

question 68

Multiple Choice

What is the fundamental difference between a fixed-price and a cost-plus contract?

• A) On fixed-price contracts partnering is used while it is not used for cost-plus contracts.
• B) On fixed-price contracts macro estimates are used while micro estimates are used for cost-plus contracts.
• C) No scope changes are made on fixed-price contracts while scope changes are allowed for cost-plus contracts.
• D) On fixed-price contracts the cost is set in advance while for cost-plus contracts it is established after the project is completed.
• E) On fixed-price contracts contractors are used while on cost-plus contracts no external contractors are used.

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Definitions:

Analyzing Jobs

Job analysis is the process of studying and collecting information about the content and the human requirements of jobs, as well as the context in which jobs are performed.

Role Ambiguity

A situation where an employee lacks clear understanding of their job duties, expectations, and responsibilities, leading to potential confusion and stress.

Generic Job Descriptions

Broad overviews of job responsibilities and requirements that are not specific to any one position, typically used to generalize roles for comparative or scaling purposes.