Atelco Inc.,a hardware firm,orders 50 laptops with the same configuration.In the context of contract categories,this scenario is an example of a:
A)cost-plus-fee contract.
B)cost-plus-percentage contract.
C)fixed-price contract.
D)time and material contract.

Question

Quizplus · Accepted Answer

A fixed-price contract involves setting a specific price for a certain product or service, regardless of the actual costs incurred by the supplier. In this scenario, Atelco Inc. is ordering 50 laptops with the same configuration, indicating that a fixed price has been agreed upon for the entire order. Therefore, the best choice is C - fixed-price contract.