Replacing Cost-Based Reimbursement Contracts with Fixed Fee Reimbursement Contracts Is

Multiple Choice

Replacing cost-based reimbursement contracts with fixed fee reimbursement contracts is one way to:

A) Reduce the incentive to biased information when allocating support department costs
B) Eliminate uncertainty when allocating support department costs
C) Consider perceived fairness when allocating support department costs
D) Eliminate the need to allocate support department costs