Questions/Main Points for Burt & Dobler Ch.19- Types of Compensation (Contracts)

What is the general relationship between cost certainty and pricing (434-436)?

What are the three general types of contract compensation agreements (437-438)?  What is the relative level of seller's risk in each?

Explain these types of contract arrangements.  When is each most/least appropriate? (438-449)

1. Fixed Price

a. Firm Fixed Price

b. Fixed Price with Economic Price Adjustment

2. Incentive Contracts (Don't dwell on the nitty-gritty of the calculations that are in the book.)

3. Cost Plus Fixed Fee

a. (Basic) Cost plus fixed fee

b. Cost plus award fee

c. Time and materials