CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM (Certified Associate in Project Management) exam with our informative quiz. Test your knowledge through multiple-choice questions and detailed explanations to boost your confidence and readiness for the certification.

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What type of contract sets a fixed total price for a defined product, service, or result?

Cost-reimbursable contracts
Fixed-price contracts
Time and materials contracts
Unit price contracts

The correct answer is: Fixed-price contracts

A Cost-reimbursable contracts do not set a fixed total price but rather reimburse the seller for their costs plus an agreed upon fee. This type of contract is typically used when the scope of work is not well-defined or when there is a high level of uncertainty. B: Fixed-price contracts set a predetermined price for the product, service, or result. This type of contract is commonly used when the scope of work is well-defined and there is little to no uncertainty. C: Time and materials contracts pay the seller based on the actual time and materials needed to complete the project, rather than a fixed price. This type of contract is suitable for projects with a high level of complexity and uncertainty. D: Unit price contracts establish a fixed price for each unit of work or material. This type of contract is typically used for projects where there is a repetitive nature to the work or product.