Which of the Following Is Not True with Respect to Fixed

Multiple Choice

Which of the following is not true with respect to fixed price redetermination contracts (FPR) ?

A) A FFP is set for an initial period of the contract
B) A redetermination (upward or downward) occurs at a stated time during the contract
C) FPR prospective almost always occurs at the middle point in time of the contract
D) FPR prospective is used where a fair and reasonable price can be developed for initial periods but not subsequent periods
E) FPR Retroactive is used when uncertainty exists as in the prospective, but the amount of the contract is small and/or the performance period is short