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NEW QUESTION: 1
Assume that your company is working under a fixed-price-incentive contract. It has a target cost of $100,000, a target profit of 10%, a price ceiling of $120,000, and a share formula of 80/20. Assume that your company completes all of the work but has actual costs of $110,000. What is the final value of this procurement?
A. $110,000
B. $132,000
C. $118,000
D. $120,000
Answer: C
Explanation:
In this situation, there is a $10,000 overrun from the target costs. Applying the 80/20 share ratio, the seller's share of the overrun is 20% of $10,000 or a minus $2,000 in earned fee. The final value of this procurement is $110,000 in costs, plus a seller fee of $10,000 less $2,000, or $8,000 for a final price of $118,000. [Monitoring and Controlling] Fleming 2003, 92
NEW QUESTION: 2
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Answer: A,B,C,D
NEW QUESTION: 3
Given: A customer service system is being developed for a telephone company to record and answer questions about telephone installations. Which of the following are requirement attributes for the system? (Select all that apply.)
A. The use case for recording phone installations is approved.
B. The requirement "automatic assignment of installers" was suggested by Tom Jones.
C. Users can record length of time for each phone installation.
D. The system will be available 24 hours a day.
Answer: A,B
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