CISSP-ISSMP: Information Systems Security Management Professional

Question

Which contract type is described by the following statement: “This contract type gives the contractor no incentive to control costs and is therefore rarely used.”

Explanation

A cost-plus-percentage-of-cost contract pays the contractor a percentage of the actual cost as its fee. Higher costs therefore produce a higher fee, so the contractor has no financial incentive to control costs.

CISSP-ISSMP: Information Systems Security Management Professional

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Notes

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QuestionQ46

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