cost-plus
1
6.6
- adjective
- Specialized
:
coste más
- The company adopted a cost-plus strategy, allowing them to cover their production costs while also earning a guaranteed profit margin.
- cost-plus contracts
- cost-plus basis
- cost-plus fee
Examples
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This regulatory system is similar to cost-plus contracts and provides few incentives to keep costs down.
Academic text (1992) -
Brazilian manufacturers historically have wielded a great deal of market power, often enough to engage in cost-plus pricing.
Academic text (1996) -
So cost plus is a business model that requires a high level of granularity with the client.
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The hospital, on the other hand, reimbursed on a cost-plus basis and provided services as requested by the physician.
Academic text (2001) -
UnitedHealthcare has an experiment underway that would get rid of the cost-plus model because it provides a powerful incentive for oncologists to use not only more drugs, but the most expensive drugs.
Blog text (4) -
Many government projects use a cost-plus pricing structure to ensure contractors are fairly compensated for their expenses.
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In the construction industry, cost-plus contracts are common, as they help manage unpredictable expenditures during a project.
How Externalized
- Specialized
1
8.2
65
5.3
- Specialized
1
6.6
- Specialized
2
7.7
Surface Forms
Morphology
Etymology
Cost-plus comes from the simple parts cost ('expense') and plus ('more' or 'in addition'). So a cost-plus agreement means you pay the real expenses and then 'plus' an agreed extra fee or percentage as the contractor's profit.