The cost plus system help out in the costs of thing during war. The cost plus system started in World War 2.
B. providing larger profits for companies that worked fast and produced a lot.
Median income $1750 year Inflation was 6% a year Cost of Living increased 30% plus US government claimed only 19%
Wars cost money and the longer the war the more money. Plus, to fight on a totally different continent cost more money.
It was a way of buying things, equipment and supplies, for the military. Ordinarily, in peace time, the military will issue a notice that it wants certain items, and notify companies in the relevant business that it will accept bids to supply that item. It will allow a certain amount of time for companies to prepare and submit their bid. All other things being equal the government is supposed to accept the offer of the lowest bidder, to buy items at the lowest cost. (Pilots joke about flying aircraft with 35,000 moving parts, each built by the lowest bidder). All of this bid-letting process takes time,and the military in WWII was in a terrific hurry. It needed things yesterday. So for many items the bidding was not done. A company which could produce the desired item was approached, and made an offer (which they really could not refuse) to produce the item on a cost plus basis. This reimbursed the company for all costs of producing the item, materials and labor and so on, and the "plus" part was a percentage added on after the cost was figured, to give the company a profit. This cut out the months of bidding and allowed production to begin immediately.
the system helped get things produced quickly
for what system?? around 65 dollars $59.99 plus tax
Weapons Systems Cost
Approx. $960,487.00 PLUS filing fees
The Izotope Ozone 5 Complete Mastering System will cost $279 plus taxes and shipping if ordered online. The exact cost of the shipping will depend on the distance between the warehouse and the location of the final shipment.
it cost 7%of the cost of the vehicle plus title transfer about 61dollars plus registration cost.
variable cost plus fixed cost.
Water cost to little for hydraulic system thus to make money we use light oils plus the vicosity of the water is TOO LIGHT
The advantage of full cost plus pricing is the higher return on investment. The disadvantage of full cost-plus pricing is lower demand for the products.
The residual value of "cost plus" is whatever is charged which exceeds the cost. Example: I provide a quote the terms for a project as being "cost plus 20%". If the cost for my project is $100, then I would bill $120. The residual value is $20.
A system in which the government paid all development and production costs plus a percentage of costs as a profit any company made for war Source: http://www.scriptovia.com/document-landing.aspx?DocID=215
The Apple iPhone 6 plus will cost $399 with a contract.