Cost-plus contract
Cost-plus contract
A
contract in which the selling price is based on the total
cost of production plus a fixed percentage or fixed amount.
Cost-Plus Contract
An agreement between a
buyer and
seller in which the seller agrees to make or produce a good for the buyer. The
selling price is the
cost to the seller of making or producing the good in addition to some fixed
fee or percentage of the cost. See also: Cost-plus pricing.
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