QUESTION: 21

A fixed fee that the seller will earn no matter how its performance is evaluated in known as:

incurred fee
award fee
period fee
base fee

Answer(s): D

QUESTION: 22

Which contracts allow overrun or under-run sharing of cost through a predetermined formula for fee adjustments that apply to incentives for cost category contracts?

fixed price incentive
cost-plus-incentive fee
special incentive fee
pros and cons of award fee

Answer(s): B

Show Answer Next Question

QUESTION: 23

Which of the following is Correct?

cost-plus-award fee contracts include subjective incentives, in which the profit the seller earns depends on how well the seller satisfies a buyer's subjective desires.
cost-plus-incentive fee contracts include subjective incentives, in which the profit the seller earns depends on how well the seller satisfies a buyer's objective desires.
cost-plus-award fee contracts include objective incentives, in which the profit the buyer earns depends on how well the seller satisfies a buyer's objective desires.
cost-plus-incentive fee contracts include objective incentives, in which the profit the buyer earns depends on how well the buyer satisfies a seller's subjective desires.

Answer(s): A

Show Answer Next Question

QUESTION: 24

Time and Material contracts typically involve higher levels of risks for sellers.

True
False

Answer(s): B

Show Answer Next Question

QUESTION: 25

When two parties expect except to deal with one another repeatedly for the purchase and sale of good and services, they may decide to enter into a long-term purchase agreement.

True
False

Answer(s): A

Show Answer Next Question

Free Financial CPCM Exam Questions (page: 9)

QUESTION: 21

QUESTION: 22

QUESTION: 23

QUESTION: 24

QUESTION: 25

CPCM Exam Discussions & Posts