PMI Agile Certification Practitioner(PMI ACP) Exam Practice Test 3

Question : 2 of 40

Marks: +1, -0

For his work with Bay Veterinarians, Bodhi uses a standard graduated fixed-price contract. If they finish on time, Bay Veterinarians charges $175 per hour. What is the rate likely to be if they finish late?

$175
$190
$160
There is not enough information to calculate a possible rate

Validate

Solution:

The correct answer is

160. If late, its expected that Bay Veterinarians will charge less per hour- this provides an incentive for on-time delivery. In the options shown here,

160 is the most reasonable choice for a graduated fixed-price contract. The other responses are incorrect because a standard fixed-price contract includes a lower rate for work that is late; keeping the amount at

175 or increasing it to

190 is not appropriate.

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