PMP Exam Set F – Q45

You are a project manager for your company. Part of the project requires producing 10,000 widgets, which your company will outsource. The company has agreed to pay all related costs and 5% of the estimated project costs. What type of contract has been negotiated?

A. Cost-Plus-Incentive-Fee contract
B. Cost-Plus-Fixed-Fee contract
C. Time and Material contract
D. Fixed-price contract

B. Cost-Plus-Fixed-Fee contract