GAQM Exam PPM-001 Topic 2 Question 78 Discussion

Actual exam question for GAQM's PPM-001 exam

Question #: 78
Topic #: 2

[All PPM-001 Questions]

Which contract type is typically used whenever the seller's performance period spans a considerable period of years?

AFixed-Price-Incentive-Fee contracts (FPIF)

BFixed Price with Economic Price Adjustment contracts (FP-EPA)

CCost-Plus-Fixed-Fee contracts (CPFF)

DTime and Material contracts (T&M)

Show Suggested Answer

Suggested Answer: B

by Melissa at Dec 14, 2023, 05:10 AM

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Sheldon

1 months ago

I'm just here for the free coffee and donuts. As long as I get to put my feet up, I don't really care what the answer is.

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Andra

1 months ago

You guys are overthinking this. The answer is obviously B) Fixed Price with Economic Price Adjustment. It's the only one that specifically mentions 'long-term' in the question. Duh!

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Lorean

11 days ago

I think A) Fixed-Price-Incentive-Fee contracts (FPIF) could also work for long-term performance periods.

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I'd have to go with D) Time and Material contracts (T&M). That way the seller can just bill for the actual time and materials used, no matter how long the project takes. Seems like the easiest option to me.

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Selma

5 days ago

I see your point, but I still think D) Time and Material contracts (T&M) offer the most flexibility in terms of billing for actual time and materials.

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Delmy

5 days ago

I see your point, but I still think D) Time and Material contracts (T&M) offer the most flexibility in terms of billing for actual time and materials.

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Isreal

7 days ago

I disagree, I believe C) Cost-Plus-Fixed-Fee contracts (CPFF) would provide more stability for both parties involved.

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Paris

13 days ago

I disagree, I believe C) Cost-Plus-Fixed-Fee contracts (CPFF) would provide more stability for both parties involved.

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Kristel

1 months ago

I think A) Fixed-Price-Incentive-Fee contracts (FPIF) would be more suitable for long-term projects.

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Gladis

1 months ago

I think A) Fixed-Price-Incentive-Fee contracts (FPIF) would be more suitable for long-term projects.

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Earleen

2 months ago

I'm not sure, but I think C) Cost-Plus-Fixed-Fee contracts (CPFF) might also be a good option for long-term performance periods.

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Oliva

2 months ago

Hmm, I'm not sure about that. I was thinking C) Cost-Plus-Fixed-Fee contracts (CPFF) might be a better fit for a long-term project. That way the seller doesn't have to bear all the risk of cost overruns.

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Leoma

29 days ago

I agree, CPFF contracts help share the risk between the buyer and seller.

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Georgene

1 months ago

I think C) Cost-Plus-Fixed-Fee contracts (CPFF) is a good choice for long-term projects.

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Cyril

1 months ago

B) Fixed Price with Economic Price Adjustment contracts (FP-EPA) can also be a good choice for long-term projects as they allow for adjustments based on economic factors.

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Stephaine

1 months ago

A) Fixed-Price-Incentive-Fee contracts (FPIF) are also commonly used for long-term projects to incentivize sellers to meet certain performance targets.

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Teddy

2 months ago

I disagree, I believe the correct answer is B) Fixed Price with Economic Price Adjustment contracts (FP-EPA).

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Tiffiny

2 months ago

I think the answer is A) Fixed-Price-Incentive-Fee contracts (FPIF).

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Fidelia

2 months ago

I'm not sure, but I think C) Cost-Plus-Fixed-Fee contracts (CPFF) could also be a good option for long-term projects.

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Alesia

2 months ago

I think the answer is B) Fixed Price with Economic Price Adjustment contracts (FP-EPA). This type of contract is designed to handle long-term projects where the seller's costs may fluctuate over time.

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Golda

26 days ago

T&M contracts might not be the best choice for long-term projects.

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Karan

28 days ago

I believe FPIF contracts could also work for projects spanning years.

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Sueann

1 months ago

I think CPFF contracts might also be used for long-term projects.

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Melita

2 months ago

I agree, FP-EPA contracts are great for long-term projects.

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Billye

2 months ago

I agree with Stephania, FPIF contracts are used for long-term performance periods.

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Stephania

2 months ago

I think the answer is A) Fixed-Price-Incentive-Fee contracts (FPIF).

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GAQM Exam PPM-001 Topic 2 Question 78 Discussion

Contribute your Thoughts:

Sheldon

Andra

Lorean

Alica

Selma

Delmy

Isreal

Paris

Kristel

Gladis

Earleen

Oliva

Leoma

Georgene

Cyril

Stephaine

Teddy

Tiffiny

Fidelia

Alesia

Golda

Karan

Sueann

Melita

Billye

Stephania