L6M5 practice question 6 of 15
When is a cost-plus pricing arrangement most likely to be used? Answer Options:
Full set: 83 questionsCorrect Answer:
C. In high-risk environments
Explanation
Cost-plus pricing is best suited for high-risk environments (p.93), such as fluctuating commodity markets. It reduces risk for suppliers by allowing cost adjustments based on actual expenses plus a margin. Option A is incorrect because low-risk projects favor fixed pricing. [P.93]
Keep practicing
Take the free L6M5 practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other L6M5 practice questions
- Question 1When should a company use redundancy to implement change? Answer Options:
- Question 2Jane works at a manufacturing organisation based in Europe. The organisation has recently…
- Question 3When is the best time to define acceptance criteria for a project? Answer Options:
- Question 4Jerry is responsible for starting a new construction project. His company wants to build …
- Question 5Scenario (same as Question 16): Fin Inc is working with the new client. What type of cost…
- Question 7What is the purpose of a Project Audit? Answer Options: