The correct terms used in cost plus and fixed price contracts to compute final p

Question

The correct terms used in cost plus and fixed price contracts to compute final price are:    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Fee = Price    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Fee = Price The correct terms used in cost plus and fixed price contracts to compute final price are:    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Fee = Price    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Fee = Price

Explanation / Answer

Option D is correct

Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Fee = Price

In cost plus and fixed price contracts, cost reimbursable is the cost and a fixed fees charged from the customers and this is the fixed price which is being charged from the customer. It is a fixed price contract

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.