The correct terms used in cost plus and fixed price contracts to compute final p

Question

The correct terms used in cost plus and fixed price contracts to compute final price are:    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Fee = Price    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Fee = Price The correct terms used in cost plus and fixed price contracts to compute final price are:    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Fee = Price    Cost Reimbursable = Cost + Profit = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Profit = Price    Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Fee = Price

Explanation / Answer

Option D is correct

Cost Reimbursable = Cost + Fee = Price; Fixed Price = Cost + Fee = Price

In cost plus and fixed price contracts, cost reimbursable is the cost and a fixed fees charged from the customers and this is the fixed price which is being charged from the customer. It is a fixed price contract

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