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A Contingency Contract Is a Formal Written Agreement in Which

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A contingency contract is a formal written agreement in which the goals of behavioral change, reinforcements, and penalties are clearly stated.


Definitions:

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.

Opportunity Costs

The value of the best alternative that is foregone when a different option is chosen.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Capacity

The maximum output that a business can produce in a given period with available resources.

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