What did the cost plus system do?

Updated: 4/28/2022
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The cost plus system help out in the costs of thing during war. The cost plus system started in World War 2.

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Q: What did the cost plus system do?
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How did the cost-plus system sped up war production?

B. providing larger profits for companies that worked fast and produced a lot.

The roosevelt administration used this economic strategy to convert from a peacetime economy to a wartime economy?

cost plus

What was the Cost of Living during World War 2?

Median income $1750 year Inflation was 6% a year Cost of Living increased 30% plus US government claimed only 19%

How did Britain plan to pay for huge expenses of french and idian war?

Wars cost money and the longer the war the more money. Plus, to fight on a totally different continent cost more money.

What was a cost-plus system during world war 2?

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.

Related questions

What was the effect of the cost plus system on production?

the system helped get things produced quickly

How much does Fable 2 cost in total?

for what system?? around 65 dollars $59.99 plus tax

What is The term that consists of Development Cost plus Procurement Cost plus the cost of facilities is?

Weapons Systems Cost

How much does it cost to put a septic system in on land that doesn't have one there yet?

Approx. $960,487.00 PLUS filing fees

How much does the Izotope Ozone 5 Complete Mastering System cost?

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.

How much does it cost to register a car in RI?

it cost 7%of the cost of the vehicle plus title transfer about 61dollars plus registration cost.

What is a firms total cost?

variable cost plus fixed cost.

Why water is not used to pressure system instead of oil?

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 advantages and disadvantages of full cost plus pricing?

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.

What is a cost-plus?

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:

How much is a iphone 6 plus cost at radioshack?

The Apple iPhone 6 plus will cost $399 with a contract.

What is the difference between cost plus pricing and marginal pricing?

Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.