Which process involves determining reasonable costs and conducting negotiations?

The process that involves determining reasonable costs and conducting negotiations is best described by cost analysis. This process is crucial in contract management as it entails a thorough examination of the various components that make up the total cost of a good or service. Cost analysis allows contract managers to assess whether the proposed costs are justifiable and in line with the market standards or what is reasonable based on the specific circumstances.

It is an integral part of negotiation strategies in contracts, providing a foundation for discussions around pricing. During negotiations, understanding cost structures enables better decision-making and supports fair agreements that reflect value for both parties.

Other options such as price analysis refer to comparing prices with similar services or products to determine competitiveness but do not involve an in-depth examination of the cost structure as cost analysis does. Form contracts generally lay out the terms of agreements rather than exploring the costs involved. Planning negotiations may set the stage for discussions but does not specifically address the assessment of costs or the negotiation process itself. This clarity on costs is essential for making informed decisions and creating equitable contracts.