Advertisement

Advertisement

cost-plus

[ kawst-pluhs, kost- ]

adjective

  1. paid or providing for payment based on the cost of production plus an agreed-upon fee or rate of profit, as certain government contracts.
  2. of or relating to a cost-plus arrangement or contract.


cost-plus

noun

    1. a method of establishing a selling price in which an agreed percentage is added to the cost price to cover profit
    2. ( as modifier )

      cost-plus pricing

“Collins English Dictionary — Complete & Unabridged” 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
Discover More

Word History and Origins

Origin of cost-plus1

First recorded in 1915–20
Discover More

Example Sentences

Boeing has often worked with the space agency through cost-plus contracts: agreements where the company receives funding from the agency to cover all development costs.

This week, Nelson took aim at the agency’s reliance on such programs and the type of contracts, known as “cost-plus,” that keep money flowing to contractors even as they exceed the budget.

As cost-plus contracts become more common, markup is a hot topic among homeowners.

“It’s been a long road, but the Commission’s bold decision puts ‘cost-plus’ regulation in the rear view mirror,” said Ron Binz, former chairman of the Colorado Public Utilities Commission and expert for Blue Planet Foundation.

Boeing is under what’s known as a cost-plus contract, which covers allowed expenses but also ensures a profit for the contractor.

Advertisement

Advertisement

Advertisement

Advertisement


cost overruncost-push