CIPS Exam A8 Topic 1 Question 64 Discussion

Actual exam question for CIPS's A8 exam

Question #: 64
Topic #: 1

[All A8 Questions]

In which of the following situations is a 'fixed price contract' most appropriate?

AIn highly volatile market conditions where raw material prices fluctuate at regular intervals

BWhere the supplier is unable to give an accurate estimate of materials to be used in completing the contract

CFor a contract where the work can accurately be foreseen and accurately measured

DFor the provision of a service where there are likely to be numerous changes to the service requirement.

Show Suggested Answer

Suggested Answer: A

by Karma at Jul 14, 2024, 12:13 PM

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Artie

5 days ago

I'm torn between B and D. Maybe we can just put a fixed price on a random number of materials and hope for the best? Or how about a service that changes so often, the price just becomes a suggestion? Sounds solid to me!

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Yuette

8 days ago

Option D, definitely. I love the idea of a fixed price contract for a service that's constantly changing. It'll be like playing contract roulette - you never know what you're gonna get!

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Wade

13 days ago

I'm going with C as well. It's the only one that makes sense for a fixed price contract. The other options sound like they'd lead to a lot of headaches and cost overruns.

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Teri

23 hours ago

Yeah, option C is definitely the most suitable for a fixed price contract. The others seem too risky.

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Celestine

2 days ago

I agree, option C seems like the best choice for a fixed price contract.

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Hillary

20 days ago

Option C all the way! A fixed price contract is perfect when you know exactly what you're getting. Trying to pin down a price when things are changing all the time? No thank you!

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Ira

7 days ago

User 1: I agree, option C is definitely the best choice for a fixed price contract.

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Lilli

25 days ago

Definitely C. I mean, why would you want a fixed price contract if the market is volatile or the supplier can't estimate the materials? That's just asking for trouble!

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Blair

18 days ago

I agree, a fixed price contract is definitely most appropriate for work that can be accurately foreseen and measured.

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Nikita

26 days ago

That could be risky, as changes to the service requirement could lead to additional costs in a fixed price contract.

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Annita

1 months ago

But what about option D) For the provision of a service where there are likely to be numerous changes to the service requirement?

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Mariann

1 months ago

I think option C is the right answer. A fixed price contract is best when the work can be accurately measured and foreseen. Anything else just seems like a recipe for disaster!

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Elouise

8 days ago

Yeah, option C makes the most sense. It's important to have a clear understanding of the work involved.

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Ressie

9 days ago

I agree, option C is definitely the most appropriate for a fixed price contract.

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Carmen

1 months ago

I agree with Nikita, fixed price contracts work best when the scope of work is well-defined.

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Nikita

2 months ago

I think C) For a contract where the work can accurately be foreseen and accurately measured is the most appropriate.

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