CIPS Exam A8 Topic 1 Question 59 Discussion

Actual exam question for CIPS's A8 exam

Question #: 59
Topic #: 1

[All A8 Questions]

In which of the following situations is a 'fixed price contract' most appropriate?

AIn highly volatile market conditions where raw material prices fluctuate at regular intervals

BWhere the supplier is unable to give an accurate estimate of materials to be used in completing the contract

CFor a contract where the work can accurately be foreseen and accurately measured

DFor the provision of a service where there are likely to be numerous changes to the service requirement.

Show Suggested Answer

Suggested Answer: A

by Felicitas at May 19, 2024, 10:50 AM

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Izetta

6 months ago

Option C is the answer, no doubt. It's like a fixed price contract is the duct tape of the business world - it just works!

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Tamekia

5 months ago

Yeah, it makes sense to use a fixed price contract when the work can be accurately measured.

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Eric

5 months ago

I agree, option C is definitely the best choice for a fixed price contract.

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Merrilee

5 months ago

Yeah, fixed price contracts work best when the work can be accurately foreseen and measured.

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Aleshia

6 months ago

I agree, option C is definitely the most appropriate for a fixed price contract.

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Glory

7 months ago

Option B sounds like a hot mess waiting to happen. I'd steer clear of that one if I were you.

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Helaine

7 months ago

Haha, Option A is like playing roulette with your wallet. Fixed price contract all the way, baby!

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Kimberely

6 months ago

Definitely, fixed price contracts provide more stability.

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Ashton

6 months ago

I agree, Option A sounds risky.

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Amber

7 months ago

I dunno, I'm kind of leaning towards Option D. Gotta be flexible, ya know? Who knows what changes might happen down the line.

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Chantell

7 months ago

Option C is the way to go, man. If you can accurately forecast the work, a fixed price contract is the way to go. Easy peasy!

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Willodean

5 months ago

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Dexter

6 months ago

Agreed, it reduces the risk of unexpected costs and changes during the project.

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Nicolette

6 months ago

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Yasuko

6 months ago

Agreed, it's much easier to manage when you can accurately predict the work involved.

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Adell

6 months ago

Option C is definitely the best choice for a fixed price contract.

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Hollis

6 months ago

It helps both parties to have a clear understanding of what is expected and the cost involved.

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Fidelia

6 months ago

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Shayne

6 months ago

Exactly, a fixed price contract is ideal when the work can be accurately foreseen and measured.

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Ty

6 months ago

C) For a contract where the work can accurately be foreseen and accurately measured

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Lilli

7 months ago

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