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Cost-plus pricing is a pricing method used by companies. It is used primarily because it is easy to calculate and requires little information. There are several varieties, but the common thread in all of them is that one first calculates the cost of the product, then includes an additional amount to represent profit. Cost-plus pricing is often used on government contracts, and has been criticized as promoting wasteful expenditures.

The method determines the price of a product or service that uses direct costs, indirect costs, and fixed costs whether related to the production and sale of the product or service or not. These costs are converted to per unit costs for the product and then a predetermined percentage of these costs is added to provide a profit margin.

There are several ways of determining cost, and the profit can be added as either a percentage markup or an absolute amount. One example is

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Cost-plus Pricing Subcategories Cost-plus Pricing Articles Are You a Plus Size Trick or Treater? by Diane Palmer Oct 10, 2008 Are you ready for Halloween?.. Have you been invited to a Halloween costume party, but because you are a plus size girl, you get stuck with the baggy sack costumes?. No more of that.. Take a good look out there now, in costume stores, rent... What are the sexiest Halloween plus size costumes by Daniel Grammatikos Sep 22, 2008 Halloween costumes can be found everywhere online, but only some online stores have a good selection when it comes to Halloween plus size costumes. Halloween is not just for kids anymore, everybody can dress up and go out and celebrate. Halloween... PLUS Loans May Help Parents Offset College Costs by Vanessa McHooley Aug 10, 2007 By now, undergraduates are making their final preparations for school: deciding on class schedules, arranging housing and finalizing financial aid awards. While some lucky students have received enough aid and grants to see them through the se... Parent PLUS and Graduate PLUS Loans Help Students Cover College Costs by Vanessa McHooley May 31, 2007 Hopefully by now your child has decided which college to attend this fall, and you are beginning to formulate your financial strategy for how you will fund the college experience. An excellent option is the PLUS Loan or Parent Loans for Underg...