cost plus

English

Noun

cost plus (uncountable) (business, often attributive)

  1. A form of contract whereby the contractor is paid for all permitted expenses, plus an additional payment.
    • 2025 July 9, Christian Wolmar, “Grin and bear it: any trains are better than an HS2 graveyard”, in RAIL, number 1039, page 46:
      The nature of the contracts, which were cost-plus, (in other words, a licence to print money), was probably the most expensive mistake, but the lack of proper project management comes a close second.
  2. A pricing strategy in which the selling price of a product is determined by adding a fixed percentage markup to its unit cost.
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