7/4/25, 10:16
PM
MBA 742 Module 6 Lecture 1 & 2 Exam questions
and answers with complete solutions verified
latest update 2025/2026
Terms in this set (149)
procurement Project ___ Management includes the
processes necessary to purchase or acquire
products, service, or results needed from
outside the project team.
Advertising ____ - The process of calling public attention to a project
or effort.
____ - The meeting with prospective sellers prior to the
preparation of a bid or
Bidder Conference proposal to ensure prospective vendors have a
clear and common understanding of the
procurement.
Also known as contractor conferences, vendor
conferences, or pre-bid conferences.
1/
33
,7/4/25, 10:16
PM
___Contract - A type of contract involving payment to
the seller for the seller's
actual costs, plus a fee typically representing the
cost reimbursable seller's profit.
Reimbursable contracts often include incentive
clauses where, if the seller meets or exceeds
selected project objectives, such as schedule
targets or total cost, then the seller receives
from the buyer an incentive or bonus
payment.
____ Contracts - payments to the seller for all
legitimate actual costs incurred for completed
Cost Plus Award Fee work
plus an award fee representing seller profit.
Cost Plus Award Fee CPAF
___Contract - buyer reimburses the seller for the seller's
Cost Plus Fixed Fee allowable costs
plus a fixed amount of profit (fee).
Cost Plus Fixed Fee CPFF
2/
33
,7/4/25, 10:16
PM
____ Contract - buyer reimburses the seller for the seller's
Cost Plus Incentive Fee allowable costs
and the seller earns profit if it meets defined
performance criteria.
3/
33
, 7/4/25, 10:16
PM
Cost Plus Incentive Fee CPIF
____ - payments to the seller for all legitimate
actual costs incurred for completed work,
plus a fee that rises as the contractor's
Cost Plus Percentage of cost rises.
Cost
Because this contract type provides no
incentive for the contractor to control costs it is
rarely utilized. The U.S. Federal Acquisition
Regulations specifically prohibits the use of this
type for U.S. Federal Government contracting
(FAR Part 16.102).
Cost Plus Percentage of CPPC
Cost
____ - price that is not subject to any adjustment
on the basis of a contractor's cost experience
Firm-Fixed Price in performing the contract.
This type of contract places upon a contractor
maximum risk and full responsibility for all
costs and resulting profit or loss.
4/
33
PM
MBA 742 Module 6 Lecture 1 & 2 Exam questions
and answers with complete solutions verified
latest update 2025/2026
Terms in this set (149)
procurement Project ___ Management includes the
processes necessary to purchase or acquire
products, service, or results needed from
outside the project team.
Advertising ____ - The process of calling public attention to a project
or effort.
____ - The meeting with prospective sellers prior to the
preparation of a bid or
Bidder Conference proposal to ensure prospective vendors have a
clear and common understanding of the
procurement.
Also known as contractor conferences, vendor
conferences, or pre-bid conferences.
1/
33
,7/4/25, 10:16
PM
___Contract - A type of contract involving payment to
the seller for the seller's
actual costs, plus a fee typically representing the
cost reimbursable seller's profit.
Reimbursable contracts often include incentive
clauses where, if the seller meets or exceeds
selected project objectives, such as schedule
targets or total cost, then the seller receives
from the buyer an incentive or bonus
payment.
____ Contracts - payments to the seller for all
legitimate actual costs incurred for completed
Cost Plus Award Fee work
plus an award fee representing seller profit.
Cost Plus Award Fee CPAF
___Contract - buyer reimburses the seller for the seller's
Cost Plus Fixed Fee allowable costs
plus a fixed amount of profit (fee).
Cost Plus Fixed Fee CPFF
2/
33
,7/4/25, 10:16
PM
____ Contract - buyer reimburses the seller for the seller's
Cost Plus Incentive Fee allowable costs
and the seller earns profit if it meets defined
performance criteria.
3/
33
, 7/4/25, 10:16
PM
Cost Plus Incentive Fee CPIF
____ - payments to the seller for all legitimate
actual costs incurred for completed work,
plus a fee that rises as the contractor's
Cost Plus Percentage of cost rises.
Cost
Because this contract type provides no
incentive for the contractor to control costs it is
rarely utilized. The U.S. Federal Acquisition
Regulations specifically prohibits the use of this
type for U.S. Federal Government contracting
(FAR Part 16.102).
Cost Plus Percentage of CPPC
Cost
____ - price that is not subject to any adjustment
on the basis of a contractor's cost experience
Firm-Fixed Price in performing the contract.
This type of contract places upon a contractor
maximum risk and full responsibility for all
costs and resulting profit or loss.
4/
33
