A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account.

Question

Quizplus · Accepted Answer

The statement is true. The cost-plus system requires that the agency keep detailed records of the costs it incurs in working on the client's account, and determines the amount billed to the client based on direct costs, overhead allocation, and markup for profits.

A Cost-Plus System Requires That the Agency Keep Detailed Records