risk for buyer

Submitted by vijayavadrevu on Mon, 06/03/2013 - 15:53

 Which type of contract has the highest risk for the buyer?

A)Reimbursed time

B) Time & Materials

C) Fixed Price

D) Reimbursed Cost

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MANOJ RAMRAOJI ...

Mon, 06/03/2013 - 16:14

         

the hierarchy of the risk for the buyer (low to High) is as below

1. CPPC

2. CPFP

3. CPAF

4. CPIF

5. TM

6. FPEPA

7. FPIF

8. FFP

hence Option B

Regards

Manoj

vijayavadrevu

Mon, 06/03/2013 - 16:19

 Is the hierarchy (low to high) correct? Fixed Price contract is high risk for seller and not buyer. Please confirm

MANOJ RAMRAOJI ...

Mon, 06/03/2013 - 16:27

Yes You are right , Kindly reverse the order, but even though the answer will remain same

MANOJ RAMRAOJI ...

Mon, 06/03/2013 - 16:29

Yes You are right , Kindly reverse the order, but even though the answer will remain same

vijayavadrevu

Mon, 06/03/2013 - 16:54

 Thank You !!!!