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NCMA CPCM Exam - Topic 4 Question 123 Discussion

Which of the following is Correct?
A) cost-plus-award fee contracts include subjective incentives, in which the profit the seller earns depends on how well the seller satisfies a buyer's subjective desires.
B) cost-plus-incentive fee contracts include subjective incentives, in which the profit the seller earns depends on how well the seller satisfies a buyer's objective desires.
C) cost-plus-award fee contracts include objective incentives, in which the profit the buyer earns depends on how well the seller satisfies a buyer's objective desires.
D) cost-plus-incentive fee contracts include objective incentives, in which the profit the buyer earns depends on how well the buyer satisfies a seller's subjective desires.

NCMA CPCM Exam - Topic 4 Question 123 Discussion

Actual exam question for NCMA's CPCM exam
Question #: 123
Topic #: 4
[All CPCM Questions]

Which of the following is Correct?

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Suggested Answer: A

by Candida at Apr 02, 2026, 11:00 AM

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Sol
5 hours ago
I think option A is correct. It makes the most sense.
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Daniel
5 days ago
I don't think that's correct at all.
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Alline
11 days ago
I agree with B, seems right!
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Chu
16 days ago
Wait, are we sure about that?
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Lavonna
2 months ago
I thought it was A, but B makes sense.
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Fausto
2 months ago
It's definitely option B.
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Cherry
3 months ago
I’m leaning towards D, but I’m worried I might be mixing it up with another topic we covered.
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Theron
3 months ago
I feel like I should know this, but I keep second-guessing myself. Wasn’t there a rule that applied to this scenario?
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Doug
3 months ago
I remember discussing the differences between options B and C in study group, but I can’t recall which one was correct.
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Tamala
4 months ago
I think the answer might be A, but I’m not entirely sure. We had a similar question in practice last week.
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