[Answer] Contractor’s overhead and profit is an example of ____________ cost.

Answer: Direct
Contractor’s overhead and profit is an example of ____________ cost.
In business overhead or overhead expense refers to an ongoing expense of operating a business. Overheads are the expenditurewhich cannot be conveniently traced to or identified with any particular cost unit unlike operating expenses such as raw material and labor. Therefore overheads cannot be immediately associated with the products or services being offered thus do not directly generate profits. However overheads are still vital to business operations as they provide critical support for the busines…
Sun Jan 22 2006 13:30:00 GMT-0500 (Eastern Standard Time) · A cost -plus contract also termed a cost plus contract is a contract where a contractor is paid for all of its allowed expenses plus additional payment to allow for a profit . Cost -reimbursement contracts contrast with fixed-price contract in which the contractor is paid a negotiated amount regardless of incurred expenses.
Allowance (money) – Wikipedia
Construction contract – Wikipedia
Overhead (business) – Wikipedia
Construction contract – Wikipedia
Construction contracting. In construction an allowance is an amount specified and included in the construction contract (or specifications) for a certain item of work (appliances lighting etc.) whose details are not yet determined at the time of contracting. These rules typically apply to: The amount covers the cost of the contractor’s material/equipment delivered to the project and all …
In cost plus fixed fee the owner pays the contractor an agreed amount over and above the documented cost of work. This is a negotiated type of contract where actual and direct costs are paid for and additional fee is given for overhead and profit is normally negotiated among parties.
Labor burdens material costs construction equipment costs and if app…

Leave a Reply