Saturday, October 31, 2009

What is Cost Plus Fee (CPF) or Cost Plus Percent of Cost (CPPC)?

What is Cost Plus Fee (CPF) or Cost Plus Percent of Cost (CPPC)?
  • Requires the buyer to pay for all cost plus a percentage of cost as a fee.
  • Sellers are not motivated to control costs because the seller will get paid profit on every cost without limit.

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Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)