posted 14½months ago by pin
© Copyright: Oliver F. Lehmann PMP Self Test, oliverlehmann.com
Cost Management
You are running a project for a customer based on a cost reimbursable contract with the following terms:
Target costs: $ 1,000,000
Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%
Price ceiling: $ 1,200,000
Which is the PTA (= Point of total assumption, Break point) of the project?
A. $1,300,000
B. $1,500,000
C. $80,000
D. $1,125,000
george (11¾months ago):
I think it's 1,300,000, which is price ceiling (the maximum possible price) plus the agreed fixed fee.
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