PK0-005 Project Life Cycle Practice Question
Which type of contract places the greatest cost risk on the seller?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Fixed-price contract
Fixed-price contract places cost risk on the seller because the price is fixed regardless of actual costs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Cost plus incentive fee
Why it's wrong here
Still cost-reimbursable; risk on buyer.
- ✓
Fixed-price contract
Why this is correct
Seller bears cost risk in fixed-price.
- ✗
Time and materials contract
Why it's wrong here
T&M shares risk.
- ✗
Cost-reimbursable contract
Why it's wrong here
Cost-reimbursable places risk on buyer.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.