FPEPA contracts are used to recognize hidden cost contingencies,such as poor quality or late delivery.

Name: FPEPA contracts are used to recognize hidden cost contingencies,such as poor quality or late delivery.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FPEPA (Firm Fixed Price with Economic Price Adjustment) contracts are primarily used to allow for adjustments in the contract price due to changes in economic conditions, such as inflation or cost of materials, not for recognizing hidden cost contingencies like poor quality or late delivery.

FPEPA Contracts Are Used to Recognize Hidden Cost Contingencies,such as Poor