A Pricing Method Where a Supplier Is Reimbursed for All

question 304

Multiple Choice

A pricing method where a supplier is reimbursed for all costs, regardless of what they may be, and also receives an agreed-on dollar amount of profit that is independent of the final cost of the project, is referred to as

• A) target return on investment pricing.
• B) cost-plus-percentage-of-cost pricing.
• C) target return on sales pricing.
• D) experience-curve pricing.
• E) cost-plus-fixed-fee pricing.

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Definitions:

Accountability

The obligation to be answerable for one's actions, ensuring responsibility is accepted and mistakes are rectified.

Management

The process of dealing with or controlling things or people, often within an organization, including planning, decision making, organizing, leading, and controlling.

Motivation

Stimulation and inspiration to move; the leadership task of mobilizing people with different ideas, skills, and values to achieve a common mission; the experience of physical and emotional needs, progressing from basic needs for survival and security, to social needs for belonging and respect, to the complex need for fulfillment. See energize and empowerment.