A _____ is a contract that reimburses the contractor for costs but the profit is a fixed amount.

A) cost reimbursable contract with a percentage fee
B) fixed price with an incentive fee
C) fixed total cost
D) fixed price with price adjustment
E) cost reimbursable contract with a fixed fee

Fixed Fee

A pricing structure where the cost of a service or project is agreed upon upfront and not subject to change based on time or resources used.

Cost Reimbursable Contract

A type of contract where the buyer reimburses the seller for all legitimate costs incurred plus a fee representing profit.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in maintaining the business.