PMI Exam Questions

_________ is the best choice for buyer when the item is well defined.

_________ is the best choice for buyer when the item is well defined.

A.
Cost plus incentive fee

B.
Fixed Price

C.
Time and material

D.
None

Explanation:
Cost plus incentive fee is always the lowest risk for the buyer if the scope of work is not well defined. Fixed price and purchase order are the best choice for buyer when the item is well defined.