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CISA Practice Question: Information Systems Acquisition, Development, and Implementation

Which of the following is a primary advantage of fixed-price contracts in systems acquisition?

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

Predictable cost for the buyer

Fixed-price contracts provide cost certainty for the buyer, as the vendor bears the risk of cost overruns.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Vendor has incentive to complete quickly

    Why it's wrong here

    While true, predictability is the primary advantage.

  • Greater flexibility to change requirements

    Why it's wrong here

    Fixed-price contracts discourage changes.

  • Lower total cost compared to time-and-materials

    Why it's wrong here

    Not always; depends on scope changes.

  • Predictable cost for the buyer

    Why this is correct

    The price is agreed upfront, reducing financial risk.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This CISA practice question is part of Courseiva's free ISACA 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 CISA exam.