One Problem with a Cost Plus Incentive Fee Procurement Contract

question 39

Multiple Choice

One problem with a cost plus incentive fee procurement contract is _____.

• A)it requires clearly defined output that is not really malleable
• B)it almost always leads to higher costs
• C)firms have a strong incentive to invest in the most expensive technology to complete the project
• D)firms have an incentive to misrepresent final costs

---

Definitions:

Neutrophils

A type of white blood cell important in the immune response, particularly in fighting bacterial infections.

Monocytes

a type of white blood cell that plays a significant role in the immune system by engulfing and digesting pathogens and cellular debris.

WBCs

White Blood Cells; cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

Macrophages

A type of white blood cell part of the immune system, responsible for detecting, engulfing, and destroying pathogens and cellular debris.