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Cost-plus pricing is a strategy to set the selling price by adding a markup percentage to the product's unit cost. It is common for utilities, government contracts, and retail stores, but it does not account for market demand and competitor prices.
A cost-plus-incentive fee (CPIF) contract is a type of cost-reimbursement contract that adjusts the fee based on the relationship of total allowable costs to total target costs. Learn the formula, examples, and components of CPIF contracts, and how they differ from other contract types.
A cost-plus contract is a contract that pays a contractor for its allowed expenses, plus a fee or profit. Learn about the history, types, usage, advantages and criticism of cost-plus contracts, especially in the U.S. government and defense sectors.
Learn the definition, calculation and history of point of total assumption (PTA), a concept in project management and contracting. PTA is the point where the seller bears all the costs of a cost overrun and the buyer pays the ceiling price.
Our mission, Mark Cuban Cost Plus Company. Accessed September 3, 2024. Accessed September 3, 2024. USC Research Shows Costco Beats Medicare in Generic Drug Savings Nearly 50% of the Time , USC ...
Markup is the difference between the selling price and the cost of a good or service. Learn how to calculate markup, profit margin, and markup percentage, and how markup affects aggregate supply and pricing.
Contribution margin is the selling price per unit minus the variable cost per unit. It is used in cost-volume-profit analysis, break-even analysis, and profit volume ratio to measure the profitability and operating leverage of a business.
Total cost is the minimum financial cost of producing some quantity of output, which includes variable and fixed costs. Learn how to decompose total cost, calculate marginal cost and profit, and use cost curves to illustrate economic concepts.