Suppose your business has agreed to pay a vendor for his services using a cost-plus-fixed-fee contract. this means

a. the agreement is to pay for all the costs and a percentage of costs as fee
b. the agreement is to reimburse for all the costs plus an incentive fee if the vendor meets the deadline
c. the agreement is to provide a total fixed price for the service
d. the agreement is to reimburse the costs plus a fixed amount as fee

 the agreement is to reimburse the costs plus a fixed amount as fee

Explanation: A cost-plus-fixed-fee contract is an expense-reimbursement agreement which allows for a calculated price to be charged to the contractor at the start of the project.

The fixed price doesn't really differ with real costs, but can be changed as a response to changes in the job under the agreement to be done.

In other words, The cost-plus fixed fee arrangement is a special sort of contract in which the contractor is charged for the usual project costs, plus an extra fixed fee for their work.  This enables the contractor to earn a profit on the job and promote allocation efficiency in different industries.

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