PMI Exam CAPM Topic 6 Question 64 Discussion

Actual exam question for PMI's CAPM exam

Question #: 64
Topic #: 6

[All CAPM Questions]

Under which type of contract does the seller receive reimbursement for all allowable costs for performing contract work, as well as a fixed-fee payment calculated as a percentage of the initial estimated project costs?

ACost Plus Fixed Fee Contract (CPFF)

BCost Plus Incentive Fee Contract (CPIF)

CFirm Fixed Price Contract (FFP)

DFixed Price with Economic Price Adjustment Contract (FP-EPA)

Show Suggested Answer

Suggested Answer: D

by Reita at Dec 24, 2023, 04:46 AM

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Dyan

1 months ago

You know, if this was a construction project, I'd be tempted to go with the FP-EPA contract. That way, I could account for any unexpected inflation or material cost increases. But for a standard service contract, the CPFF is the way to go.

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Verda

3 days ago

D) Fixed Price with Economic Price Adjustment Contract (FP-EPA)

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Ming

9 days ago

C) Firm Fixed Price Contract (FFP)

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Gerald

15 days ago

B) Cost Plus Incentive Fee Contract (CPIF)

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Denny

18 days ago

A) Cost Plus Fixed Fee Contract (CPFF)

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Elke

2 months ago

Hmm, I was thinking the CPIF contract, but now that I re-read the question, the CPFF makes more sense. Though I do sometimes wish I could negotiate a higher percentage of the estimated costs as my fee!

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Alpha

6 days ago

It would be nice to negotiate a higher percentage as a fee, but the CPFF contract is still a good choice.

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Meaghan

9 days ago

I agree, the CPFF contract seems to be the best option here.

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Brent

19 days ago

I think the CPFF contract is the right choice.

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Maynard

2 months ago

I agree, the CPFF contract is the correct answer. It provides the seller with the financial security and predictability they need to take on a project like this.

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Irene

14 days ago

I see your point, but I still think the CPFF contract is more beneficial for the seller in terms of financial stability.

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Shonda

17 days ago

B) Cost Plus Incentive Fee Contract (CPIF)

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Xochitl

24 days ago

I prefer the CPIF contract because it offers the seller an additional incentive for cost control.

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Aron

25 days ago

A) Cost Plus Fixed Fee Contract (CPFF)

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Vicente

2 months ago

The CPFF contract seems like the obvious choice here, with the seller getting reimbursed for all allowable costs and a fixed-fee payment. This is the most straightforward option.

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