Which of the Following Is FALSE About Fixed-Price Contracts

question 66

Multiple Choice

Which of the following is FALSE about fixed-price contracts?

• A)The contract subjects the supplier to a large degree of financial risk in the event of cost escalations.
• B)The contract includes a fair and reasonable incentive that requires the contractor to assume an appropriate share of the risk.
• C)The administrative burden of signing the contract is very high.
• D)The contract subjects the buyer to financial loss if the market price drops.

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