Cost-Plus Contracts

question 107

Multiple Choice

Cost-plus contracts

• A)refers to contracts that are modified from their original terms during the course of the contract.
• B)refers to contracts where the contractor is not expected to recover all costs incurred in completing the project.
• C)are only used in countries where IFRS rules are followed.
• D)are those for which the contractor is reimbursed for allowable or otherwise defined costs plus a profit markup.

---

Definitions:

Specific Nerve Energies

The theory that different sensory nerves convey specific sensations to the brain.

Sensory Receptor

A specialized neuron that detects a specific type of stimulus and converts it into an electrical signal in the nervous system.

Signal Detection Theory

A means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.