With a Cost Plus Incentive Fee (CPIF)

Multiple Choice

With a Cost Plus Incentive Fee (CPIF)

A) the customer can pay a lower price if the contractor can reduce costs
B) the incentive is to come at or below the target cost
C) the contractor can earn a larger profit by reducing costs
D) is not really a cost-reimbursable contract
E) the price is periodically adjusted to allow for changes in materials, labor, or overhead costs