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. 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

Word History and Origins

Origin of cost-plus¹

First recorded in 1915–20

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.

From The Verge

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.

From Washington Post

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

From Seattle Times

“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.

From Washington Times

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

From Washington Post