L3M4 Exam Dumps | The Grain Building Limited company contracts with many smaller suppliers on projects where agents can

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CIPS.L3M4.v2025-01-04.q74
Question 48

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Question 48/74

The Grain Building Limited company contracts with many smaller suppliers on projects where agents can create uncertain working conditions, including changes to the scope of work, start times and late changes. The work is often affected by the weather, shortages of parts, or client indecision. To mitigate this, Grain Building Limited contracts with known and reliable suppliers on the basis of the cost-plus pricing model.
Which is the correct meaning of the term "cost-plus"?

A. Costs plus overheads, profits, and taxes

B. Costs plus delivery and profit

C. Costs plus taxes and profit

D. Costs plus agreed profit

Correct Answer: D

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