cost plus
The term "cost plus" is commonly used in pricing strategies and contractual agreements to ensure that the provider's costs are covered along with an additional profit margin.
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Definition
B2Pricing Strategy
(business, finance)A method of setting a product's price by adding a fixed percentage or amount to its production cost.
Example
- The company uses a cost-plus approach to determine the price of their new gadget.
C1Contractual Agreement
(business, legal)An agreement where the buyer pays the seller for all incurred costs plus an additional fee for profit.
Example
- The construction project was managed under a cost-plus contract to ensure transparency in expenses.
Similar
Terms that have similar or relatively close meanings to "cost plus":