D is the correct answer because the cost overrun in the firm fixed price (FFP) contract is borne by the seller.

A is incorrect because in cost plus incentive fee (CPIF) cost overrun is paid by the buyer.

B is incorrect because in time and materials (T&M), the increased cost due to the increased quantity of resources, such as work hours by a contractor, is borne by the buyer.

C is incorrect because in a cost plus fixed fee (CPFF) contract, cost overrun is paid by the buyer, as the seller is reimbursed for all allowable costs.

A is the correct answer because it’s only the rates for labor and materials that are fixed.

B, C, and D are incorrect because the given scenario does not match the definitions of these contract types.

B is the correct answer because contract types are a tool and not an input to planning procurements.

A, C, and D are incorrect answers because all of these are true statements.

C is the correct answer because cost overrun is paid by the buyer in cost plus fixed fee (CPFF) contracts.

A is incorrect because the firm fixed-price presents risk to both buyer and seller because the fixed price might turn out to be above or below the actual cost.

B and D are incorrect because the fee in these cases does not rise with the increase of the actual cost.

A is the correct answer because you can fairly estimate the cost for one program, and you do not know the number of programs required.

B and C are incorrect because the reimbursable cost does not make sense in this case, and you don’t have to add a fee to the cost.

D is incorrect because you cannot correctly estimate the total price because you do not know how many programs are required.

C is the correct answer because make-or-buy analysis is a technique used in the procurement planning process called Plan Procurements.

A is incorrect because make-or-buy decisions are input to the Conduct Procurements process.

B is incorrect because there is no standard process called Select Sellers.

D is incorrect because Estimate Costs is not the process in which make-or-buy decisions are made.

D is the correct answer because the procurement documents should be rigorous enough to ensure consistent responses from different sellers that can be fairly compared to one another and flexible enough to allow sellers to offer suggestions on better ways to satisfy the requirements.

A is incorrect because it does not allow sellers to be creative in offering solutions.

B is incorrect because documents must be rigid enough that each seller understands the requirements.

C is incorrect because the requirements are set by the buyer and not by the seller.

C is the correct answer because the amount of work and hence the cost cannot be determined at this point. According to CPFF, all costs are reimbursed to the seller and a fixed fee as a percent of the original estimate is also paid.

A is incorrect because the amount of work and hence the cost cannot be determined at this point.

B is incorrect because a time and materials contract is used when the cost of an item can be fairly estimated but the number of needed items is unknown. This is not the case here.

D is incorrect because there is no such contract type as cost plus time.

D is the correct answer because Administer Procurements uses performance reports generated by the Report Performance process and approval of change requests generated by the Perform Integrated Change Control process.

A is incorrect because the Administer Procurements process will need approved change requests from the Perform Integrated Change Control process, which therefore must be run first.

B and C are incorrect because the Report Performance process must be run before the Administer Procurements process, as it uses performance reports generated by the Report Performance process.

B is the correct answer because the deliverables accepted through procurement closure must go through project closure for handing them over to the customer or the sponsor.

A, C, and D are incorrect because all these activities are part of the procurement closure.

C is the correct answer because closed contracts are the output of the Close Procurements process.

A, B, and D are incorrect because all these items are the output of the Close Project or Phase process.

B is the correct answer because the deliverables must go through the Verify Scope process before going through the Close Project process, and before the scope can be verified, they must be validated through the quality control process.

A is incorrect because the deliverables must be validated through the quality control process before their scope can be verified.

C and D are incorrect because the Close Procurement process must be performed before you have all the accepted products that will go through the Close Project or Phase process.

A is the correct answer because you can review the project work as well as the procurement work and procedures and learn from both.

B, C, and D are incorrect because these are no closing processes with these names.