A(n) fixed price contract provides for a stable customer price, but requirements will be well defined by the outsourcer at the beginning of the contract period.

Question

Quizplus · Accepted Answer

The statement is true. A fixed price contract means that the customer pays a set price for the outsourced services or products, regardless of any unforeseen circumstances that may affect the actual cost of providing them. This type of contract is appropriate when the requirements are well defined, as any changes or additions to the scope of work may incur extra costs for the outsourcer. Therefore, the outsourcer will typically work closely with the customer to ensure that the requirements are clearly specified and agreed upon before the contract is signed.

A(n) Fixed Price Contract Provides for a Stable Customer Price