A contract that specifies that the supplier will be paid for the cost of production as well as some fixed amount or percentage of cost is called a(n)
A)relative-benefits contract.
B)cost-plus contract.
C)allocation cost pool.
D)indirect cost budget.

Question

Quizplus · Accepted Answer

A cost-plus contract is a type of contract in which a supplier is paid for both the cost of production and an additional fixed amount or percentage of the cost. This is a common type of contract in the construction industry or when a supplier is producing a unique product. The other options are not related to this type of contract.

A Contract That Specifies That the Supplier Will Be Paid