Which of the following contract types places the LEAST amount of risk on the seller?

Which of the following contract types places the LEAST amount of risk on the seller?

A.
Fixed-Price

B.
Cost-Plus-Fixed-Fee (CPFF)

C.
Cost-Plus-Fee (CPF)

D.
Time and material

Explanation:

Explanation : CPF has a certain risk to the seller. Since the fee limits and caps the amount that is
a payment of his work. If the seller has ample amount of time and available material with no
capped fee or fixed price, that will be more acceptable to the seller. For example, if a buyer agrees
on time and material, the seller can buy material cheaply before time thus saving money on costs
of material. This will ensure he buys cheap and he can sell the leftover material for a bit more
money.
Topic 2, Volume B