CAPM (Certified Associate in Project Management) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the CAPM exam with our comprehensive quiz that includes engaging questions, detailed explanations, and ample practice resources to help you succeed.

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

Which type of fixed-price contract is most common and has the price set at the outset without being subject to change?

  1. Firm fixed-price contracts

  2. Fixed-price incentive fee contracts

  3. Fixed price with economic price adjustment contracts

  4. Cost Plus Fixed Fee contracts

The correct answer is: Firm fixed-price contracts

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.

More Questions Like This