None of them pose any risk to the seller as he is guaranteed to get reimbursed for the costs incurred. The only questions is: Which one offers lowest profit margin for the seller? It is CPFF.
CPAF is the riskiest for the seller among other options. Here there is no guarantee for Award Fees. It depends on the Buyer. The seller always should be vigilant and satisfy the buyer in order to get his fee.Regards,CHOWDARY
_____________ is the riskiest of the cost plus contracts for the seller.
(A) CPPC
(B) CPFF
(C) CPAF
(D) CPIF
Answer
(D) CPIF (In CPIF contracts, if the final costs are less or greater than original estimated costs, then both buyer and seller share costs from the departures based upon a prenegotiated cost sharing formula) .
ChandraR
Thu, 03/18/2010 - 13:15
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None of them pose any risk
None of them pose any risk to the seller as he is guaranteed to get reimbursed for the costs incurred. The only questions is: Which one offers lowest profit margin for the seller? It is CPFF.
Chandra
chowdary2104
Thu, 03/18/2010 - 14:06
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CPAF is the riskiest for seller among those
CPAF is the riskiest for the seller among other options. Here there is no guarantee for Award Fees. It depends on the Buyer. The seller always should be vigilant and satisfy the buyer in order to get his fee. Regards, CHOWDARY
ChandraR
Thu, 03/18/2010 - 21:58
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Yasser, What is the
Yasser,
What is the correct answer and explanation?
Chandra
pkukilla
Thu, 03/18/2010 - 22:52
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II guess it should be b
II guess it should be b (CPFF)
yassersaleh
Thu, 03/18/2010 - 23:59
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cost plus contracts Question
_____________ is the riskiest of the cost plus contracts for the seller.
(A) CPPC
(B) CPFF
(C) CPAF
(D) CPIF
Answer
(D) CPIF (In CPIF contracts, if the final costs are less or greater than original estimated costs, then both buyer and seller share costs from the departures based upon a prenegotiated cost sharing formula) .