A Contract That Specifies That the Supplier Will Be Paid

question 7

Multiple Choice

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.

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Definitions:

Simple Interest

A method to calculate interest where the interest payment is a fixed percentage of the principal amount that does not change over the life of the loan or investment.

Interest

Interest is the cost of borrowing money, expressed as a percentage of the borrowed sum, paid by the borrower to the lender for the use of the money over a specified period.

Lump Sum

A one-time transaction executed at a specific moment, rather than multiple transactions spread out over a period.

Rate Of Return

The profit or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.