Point of Total Assumption - Assignment Point
Point of Total Assumption
Subject: Economics | Topics:

The point of total assumption (PTA) is a point on the price line of profit-cost curve based on the contract elements of a fixed price as well as incentive-Firm Target (FPI) contract above which the seller effectively bears every one of the costs of a cost overrun. The seller bears each of the cost risk with PTA and further than, due to a dollar for dollar reduction in profit beyond the expense at the PTA.

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