A pricing method where a supplier is reimbursed for all costs, regardless of what they may be, and also receives an agreed-on dollar amount of profit that is independent of the final cost of the project, is referred to as
A) target return on investment pricing.
B) cost-plus-percentage-of-cost pricing.
C) target return on sales pricing.
D) experience-curve pricing.
E) cost-plus-fixed-fee pricing.

Question

Quizplus · Accepted Answer

Cost-plus-fixed-fee pricing involves reimbursing the supplier for all costs incurred and providing a fixed fee as profit, independent of the project's final cost.

A Pricing Method Where a Supplier Is Reimbursed for All