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:

UCR

Unconditioned Response, an automatic response to a stimulus that does not need to be learned.

CR

In conditioning, this stands for conditioned response, which is a learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Classical Conditioning

A pairing technique in behavioral learning where two stimuli are repeatedly combined; a reaction, initially instigated by the second stimulus, is finally instigated by only the first stimulus.

Cognitive Dissonance

A state of mental uneasiness caused by possessing multiple opposing beliefs, ideas, or values concurrently.