Cost-Plus Percentage of Cost

Cost-Plus Percentage of Cost is a pricing method used by businesses to determine the price of a product or service. It involves calculating the total costs incurred to produce or deliver something, then adding a specified percentage to those costs as profit. For example, if a project costs $100 to complete and the agreed-upon percentage is 20%, the final price will be $120. This approach ensures that the business covers its costs while also earning a profit, making it common in contracts where costs can vary.