With a cost-reimbursement type of contract,the greatest risk is assumed by:
A) the purchasing company.
B) the vendor.
C) both the purchasing company and the vendor.
D) neither the purchasing company nor the vendor.

Question

Quizplus · Accepted Answer

With a cost-reimbursement type of contract, the purchasing company assumes the greatest risk as they will be responsible for paying the costs incurred by the vendor, even if the project is not completed successfully or within budget. The vendor is compensated for their costs and is not responsible for any financial losses.

With a Cost-Reimbursement Type of Contract,the Greatest Risk Is Assumed