Cost-Plus Pricing
/ˌkɒst plʌs ˈpraɪsɪŋ/
Definitions
- (n.) A pricing strategy whereby a seller adds a fixed percentage or amount to the cost of producing goods or services to determine the selling price.
The government contract was awarded using cost-plus pricing to cover expenses plus a reasonable profit.
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See also
Commentary
Cost-plus pricing is often used in government contracts to ensure fair compensation, but it requires careful auditing to prevent cost inflation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.