A _____ Is When a Consulting Firm Bills the Client

question 68

Multiple Choice

A _____ is when a consulting firm bills the client for developing an application based on the amount of time and cost of materials to complete the work.

• A)Cost-Reimbursable contract
• B)Time and Materials contract
• C)Fixed Price/Lump Sum contract
• D)Cost plus fixed fee contract
• E)Cost-plus-incentive-fee contract

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Definitions:

Commercial Use

The use of products, services, or information for business purposes or financial gain, as opposed to personal or educational use.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, such as labor or capital, holding all other input factors constant, crucial in determining how many resources a firm should hire or use.

Productivity

A measure of the efficiency of production, usually calculated as the ratio of output produced to inputs used.

Marginal Revenue Product

is the additional revenue generated by employing one more unit of input, such as labor or capital, in the production process.