Supply Chain Management Professional (SCMP) · Question
Which type of contract is most suitable when the scope of work is well-defined and risks are clearly understood?
A fixed-price contract provides cost certainty for the buyer when the project scope and deliverables are clear. The seller assumes most of the risk.
Start free practice for Supply Chain Management Professional (SCMP)
200 questions · no signup required · 40 free questions per day
Question: Which type of contract is most suitable when the scope of work is well-defined and risks are clearly understood?
Answer options:
- Cost-plus contract
- Time and materials contract ✅ Fixed-price contract
- Target cost contract
Correct answer: Fixed-price contract
Explanation: A fixed-price contract provides cost certainty for the buyer when the project scope and deliverables are clear. The seller assumes most of the risk.
Start free practice for Supply Chain Management Professional (SCMP)
200 questions · no signup required · 40 free questions per day
More about Supply Chain Management Professional (SCMP)
More for Supply Chain Management Professional (SCMP) candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Supply Chain Management Professional (SCMP) Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.