Incurred cost reporting can provide the negotiator with which of the following? (Choose two of the following)
Understand the Problem
The question is asking about the implications of incurred cost reporting in negotiations, specifically what benefits it can provide. It seeks to clarify which two of the listed options are relevant consequences or advantages of such reporting.
Answer
Baseline for price reasonableness determination and opportunity to reap the benefits of contractor-driven cost reductions.
The final answer is baseline for price reasonableness determination and opportunity to reap the benefits of contractor-driven cost reductions.
Answer for screen readers
The final answer is baseline for price reasonableness determination and opportunity to reap the benefits of contractor-driven cost reductions.
More Information
Incurred cost reporting helps negotiators by providing data on actual costs incurred, which can be used to assess and negotiate fair pricing, and also identify potential cost savings from contractors.
Tips
A common mistake is assuming cost reporting is mainly for urgency or performance metrics rather than cost assessment and optimization.
