The bank buys the house, then sells it to the buyer at cost plus a pre-agreed-upon profit, paid in installments.
To make matters worse, our cost plus reimbursement system encourags providers to spend a lot of money to solve both these problems and related additional health issues.
Frank also cites an American Bar Association ethics ruling suggesting law firms should only bill clients their actual cost plus a reasonable allocation of overhead, including the cost of outsourced legal work.
FORBES: Plaintiff Lawyers in Citigroup Case Seek Big Markup For Outside Attorneys
This means that the cost of conversion plus the cost of storage will have to be similar to the cost of providing energy on demand from the energy stored in chemical or nuclear fuels.
FORBES: Storage, Not Generation, is the Challenge to Renewable Energy
Sullivan says the cost-plus deal in Massachusetts failed to create incentives to hold Bechtel and PB accountable for cost overruns.
It's worked out so well that today only 20% of Rockwell's defense contracts are cost-plus deals.
These have grown fat on cost-plus contracts that have given them little incentive to innovate.
Speed is also a factor: Cost-plus deals diminish negotiating time once the contractor's fee has been set.
But cost-plus projects often leave some wiggle room in accounting for fixed costs ( see box, p. 66).
Instead of a cost-plus mentality, we'd have the opposite--an intense emphasis on productivity.
This kind of accounting dispute, says Michael Garvin, a professor of civil engineering at Columbia University, often happens in cost-plus deals.
In cost-plus the government covers development expenses and certain unpleasant surprises but limits the contractor to a small markup (typically 6% to 9%).
Does he have any idea what cost-plus-4 means to his business?
FORBES: FBI Says Recordings Expose Jimmy Haslam's 'Jacking The Discount' Fraud At Pilot Flying J
Since contracts are on a cost-plus basis, profits are built in.
Since contracts are on a cost-plus basis, profits are built-in.
"The overuse of cost-plus contracts, high contractor overhead expenses, excessive contractor award fees, and unacceptable program and project delays all contributed to a significant waste of taxpayers' dollars, " the report said.
Currently health care is dominated by a cost-plus mentality.
SRA's criticisms of lax management of cost-plus maintenance contracts.
ECONOMIST: Network Rail's deteriorating performance is under attack
By itself, such cost-plus pricing can be a profitable strategy in an inflationary time if consumers have accepted the idea that prices are rising in a given category, such as baked goods, Lodish says.
In that climate of uncertainty the U.S. Agency for International Development opted for a cost-plus, fixed-fee deal--a contract often used by governments to exert some control over costs and give the contractor incentive to engage in open-ended work.
Employer-clients like Boeing, Citigroup, Pfizer and Microsoft sign contracts in which they agree to pay everything from construction costs to ongoing maintenance in return for on-site child care services for their employees' children. (Often, these employer "sponsors" will also subsidize the parents' tuition.) Under certain "cost-plus" contracts, the employer-sponsors will even shoulder some of the care center's risk in exchange for more control of the operations.
The last time this happened in a major way it sent AIG Financial Products into a tailspin that caused the collapse of the larger company plus cost the US Government a hundred billion or more in financial support (much of which, possibly all, will eventually be got back).
The maximum cost of making a call has been set at 33 pence per minute plus VAT, while the maximum cost of receiving a call will be 16p plus VAT.
In some cases, the total cost of the cakes plus shipping meant we paid nearly 10 bucks per cupcake.
This, plus the cost of required recovery time, determines what level of recovery is right for any particular data center.
FORBES: Defending Data Centers From Criminals And Hurricanes: What's Your Recovery Plan?
Mortgage costs in rural areas plus the cost of daily travel on the public transport to London will rapidly approach London mortgage costs.
FORBES: Investing in Public Transport Doesn't Really Solve Anything
This is something that I do for contests and giveaways on my site: I pay for the cost of the books plus shipping for the winners.
FORBES: Ask the taxgirl: Promotional Expenses and 'Lost' Revenue
At the cost of the coffee plus a 20% margin.
FORBES: If Starbucks Makes Losses In The UK Then Why The Demand It Pays Profit Taxes?
Figure in the cost of the memory plus the larger circuit boards needed for rival systems, and the VideoLogic-NEC team claims its system costs hardware makers half as much as one using older technologies.
应用推荐