Which of the following best explains 'unit rate/charter contracts'?
A) Contractor agrees to work based upon compensation of all actual costs incurred plus profit margin.
B) Contractor agrees to work based upon compensation of all actual cost.
C) Contractor agrees to work based on projected costs only.
D) Contractor agree to work based on outcome of further negotiations.

Question

Which of the following best explains 'unit rate/charter contracts'? 
A) Contractor agrees to work based upon compensation of all actual costs incurred plus profit margin. 
B) Contractor agrees to work based upon compensation of all actual cost. 
C) Contractor agrees to work based on projected costs only. 
D) Contractor agree to work based on outcome of further negotiations.

Quizplus · Accepted Answer

Unit rate/charter contracts refer to a type of contract where the contractor agrees to work based on compensation of all actual costs incurred plus profit margin. This is different from a fixed-price contract, where the contractor is paid a predetermined amount regardless of actual costs incurred.

Which of the Following Best Explains 'Unit Rate/charter Contracts