In cost-plus contracts,a predetermined amount of profit is added to the cost of the contract.

Name: In cost-plus contracts,a predetermined amount of profit is added to the cost of the contract.
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In cost-plus contracts, the contractor is reimbursed for the actual cost of the work performed plus a predetermined amount of profit. This predetermined profit is added to the cost of the contract to ensure that the contractor makes a profit.

In Cost-Plus Contracts,a Predetermined Amount of Profit Is Added to the Cost