The federal government often uses ____ pricing when it grants defense contracts.
A) markup
B) differential
C) breakeven
D) cost-plus
E) competition-based

Question

Quizplus · Accepted Answer

The federal government often uses cost-plus pricing when it grants defense contracts. In this type of pricing, the contractor is reimbursed for its costs incurred and then paid a profit margin or percentage on top of that. This allows the government to control costs, while still incentivizing the contractor to complete the project efficiently.

The Federal Government Often Uses ____ Pricing When It Grants