TOPIC: Free PMP® Exam Sample Question of the Week

Hello everyone! Here is this week's free PMP® exam sample question from the PM Exam Simulator.

In which type of contract is the seller reimbursed for performing the contract work and receives a fixed fee payment calculated as a percentage of the estimated project cost?

A. Cost plus award fee contract
B. Lump-sum contract
C. Cost plus fixed fee contract
D. Cost plus incentive fee contract

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HINT: Costs are being reimbursed.

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Answer and Explanation:
The correct answer is C.

In a cost plus fixed fee contract the seller is reimbursed for all allowable costs for performing the contract work and receives a fixed fee payment calculated as a percentage of the initial estimated project costs.