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The cost-plus-a-percentage-of-cost contract provides for the seller to receive reimbursement for its actual cost and a profit component, called __________, equal to some predetermined percentage of its actual costs.
Suggested Answer: C
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31 comments · newest first
JU
Juliana
10 months ago
Yup, "fee" is the right term here.
AL
Allene
11 months ago
I thought it was more complicated than just a fee.
IO
Iola
11 months ago
Wait, is it really that simple?
MO
Mona
11 months ago
Totally agree, it's the fee!
LY
Lynda
11 months ago
It's definitely "fee."
SH
Shad
12 months ago
I’m pretty confident it’s "fee." It’s the only term that makes sense in this context.
CA
Catrice
12 months ago
I keep mixing up the terms. Is it "fee" or something else? I wish I had reviewed this more.
KY
Kyoko
12 months ago
I remember practicing a similar question, and "fee" was definitely the term we used for that profit component.
JO
Joanne
1 year ago
I think the answer is "fee," but I'm not entirely sure. It sounds familiar from the lectures.
XE
Xenia
1 year ago
Okay, let me break this down. The question is asking for the term that represents the profit component, and the options are fee, statement, penalty, and none of the above. I'm leaning towards fee, but I want to double-check my understanding before answering.
TE
Terina
1 year ago
Ah, I remember learning about this in class. The profit component in a cost-plus-a-percentage-of-cost contract is called the "fee." I'm confident that's the right answer.
ZI
Zita
1 year ago
Hmm, I'm a bit unsure about this one. I know the cost-plus contract involves reimbursing the seller's actual costs, but I can't quite remember the specific term for the profit component. I'll have to think this through carefully.
GA
Gayla
1 year ago
This one seems pretty straightforward. The key is to identify the term that represents the profit component in a cost-plus-a-percentage-of-cost contract.
ZI
Zita
1 year ago
A fee, huh? Sounds like the seller's getting a little extra for their troubles. It's like they're saying, 'Hey, thanks for doing all the hard work. Here's a little something for your trouble.'
HE
Hester
1 year ago
No, it's not a statement. It's an additional payment for their work.
LA
Laticia
1 year ago
B) statement
LI
Lilli
1 year ago
Yeah, it's a way to incentivize the seller to keep costs low.
LI
Lindy
1 year ago
A) fee
JE
Jerilyn
1 year ago
None of the above? Really? That's a bold move. I mean, it's not like the question is asking for rocket science or anything. Gotta be one of those options, right? Or maybe the exam writer is just messing with us.
DE
Deonna
1 year ago
Hmm, I'm not so sure about that. 'Statement' and 'penalty' just don't seem to fit the context here. I'm leaning towards A, but I'll double-check my notes just to be safe.
EM
Emelda
1 year ago
B) statement
LE
Leatha
1 year ago
I agree, 'fee' makes the most sense in this context.
HO
Howard
1 year ago
A) fee
LO
Lorean
2 years ago
A fee? Well, that's a pretty straightforward answer. It's like the seller gets a little bonus for doing their job, you know? No brainer if you ask me.
CA
Carissa
1 year ago
No, it's not a statement. It's a fee for the seller.
KI
Kimberely
1 year ago
B) statement
AL
Alecia
1 year ago
Exactly, it's a fee that the seller receives on top of their actual costs.
NI
Nickolas
1 year ago
A) fee
OL
Olen
2 years ago
I agree with Carlota, the cost-plus-a-percentage-of-cost contract is designed to ensure the seller is reimbursed for their costs and also makes a profit through a fee.
CA
Carlota
2 years ago
I think the answer is A) fee because it makes sense for the seller to receive a profit component based on a percentage of their actual costs.
JE
Jerilyn
2 years ago
A) fee