With bid pricing, it is best for the bidder to use the same overhead and profit rates on all jobs since that will make it easy to estimate costs and eventually will increase profits.

Question

Quizplus · Accepted Answer

Bid pricing should be tailored to each individual job in order to accurately reflect the costs associated with that particular project. Using the same overhead and profit rates on all jobs could result in overestimating or underestimating costs and ultimately decreasing profits.

With Bid Pricing, It Is Best for the Bidder to Use