Question

Help Save & Exit Subn When buying highly technical, few-of-a-kind products such as hydroelectric power plants, governments have found that general contractors are reluctant to specify a formal, fixed price for the procurement. Therefore, these contractors useto compensate them for any cost overruns ok Multiple Choice nt at-market pricing experience curve pricing cost-plus-fixed-fee pricing standard markup pricing 10

Answer 1

C.cost plus fixed fee pricing.

contractors use cost plus fixed fee pricing to recover the costs they incur.

In addition to the costs a fixed fee will also be paid to the contractor.

Experience curve pricing sees that the price per unit manufactured will reduce with every incremental unit manufactured.

Standard markup pricing means a standard percentage over the cost is used to express price.