In Cost-Plus Contracts, the "Plus" Is the Sales Price

question 25

True/False

In cost-plus contracts, the "plus" is the sales price.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or business activity.

Machine Hour

A measure of production time, specifically the number of hours a machine is operated in the manufacturing process.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.

Total Expense

The sum of all costs and expenses incurred by a business during a specific period.