Project Management Professional (PMP) Exam Practice – Question1624

Your company decided to award a contract for project management services on a pharmaceutical research project. Because your company is new to project management and does not understand the full scope of services that may be needed under the contract,
it is most appropriate to award a______________


A.
Firm-fixed-price contract
B. Fixed-price-incentive contract
C. Cost-plus-a-percentage-of-cost contract
D. Time-and-materials contract

Correct Answer: D

Explanation:

Explanation:
A time-and-materials contract is a type of contract that provides for the acquisition of supplies or services on the basis of direct labor hours, at specified fixed hourly rates for wages, overhead, general and administrative expenses, and profit; and materials at cost,
including materials-handling costs.