Chapter 5

1. Project contract. The project contract is a project-based variation of the order entity.
2. False. Most all projects will have multiple invoices generated.
3. Milestones. Milestones are created to reflect the contractual agreements in a statement of work.
4. True.
5. False. In our example, we are mixing fixed-price and time and material contracts.
6. Provides a schedule of milestone invoice-generation dates.
7. Time and materials, since time and materials contracts require a selling rate to bill out the hours.
8. The multidimensional pricing model allows for pricing at a rate card-, client-, and project-specific level.
9. False. If set up properly, labor cost rates can be used to track all costs against a project.
10. False. Project costing is a sensitive topic. I suggest working cross-functionally through a firm to gain agreement on what a project cost is.