cost-plus

cost-plus definition - business

cost-plus

Of or relating to a contract that stipulates the buyer will pay an amount equal to the actual cost of production plus an agreed-upon fee or percentage profit. Cost-plus contracts offer the possibility the contracting party will have little incentive to minimize expenses.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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