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"Question 11: Work has been completed on your Fixed Price Incentive
Contract. The original contract was for $55,000, of which $50,000 is target
cost and $5,000 is target profit. A share ratio of 50/50 has been agreed
upon. The actual cost incurred on the project is $48,000. How much is the
I've reviewed the answer key and understood the answer; however, my question is with the original problem. The problem outlines the the work has been completed on a 'Fixed Price Incentive' - after reviewing definitions in PMBOK 5th pg363-4, I wonder if this should read 'Cost Plus Incentive Fee Contract' instead as 'buyer and seller share costs from the departures based upon a prenegotiated cost-sharing formula'?
If this presumption is incorrect - would you be able to briefly explain the differences between these contracts?
This interview with Simona Fallavollita (LinkedIn Profile) was recorded at the magnificient Project Management Institute (PMI)® Global Conference 2017 in Chicago, Illinois. We discuss the how, what, why and when of the changes that are coming to the PMP exam.