CAPM Practice Exam 2026 – All-in-One Guide to Master Your Certified Associate in Project Management Exam!

A firm fixed-price contract is the most common and has the price set at the outset without being subject to change. This is different from fixed-price incentive fee contracts, which offer additional bonuses or penalties based on performance. Fixed price with economic price adjustment contracts allow for the price to be adjusted based on external factors, such as inflation. Cost Plus Fixed Fee contracts involve the contractor being reimbursed for allowable costs plus a fixed fee, so the price in this type of contract is not initially set. Therefore, A is the correct answer.