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  2. Cost-plus pricing - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_pricing

    Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [ 1][ 2] An alternative pricing method is value-based pricing.

  3. Percentage-of-completion method - Wikipedia

    en.wikipedia.org/wiki/Percentage-of-Completion...

    (a) the gross amount due from customers for contract work as an asset; and (b) the gross amount due to customers for contract work as a liability. (These should be separate line-items on the face on the balance sheet.) The gross amount due from/to customers for contract work is the net amount of: (a) costs incurred plus recognized profits; less

  4. Completed-contract method - Wikipedia

    en.wikipedia.org/wiki/Completed-contract_method

    Completed-contract method. The Completed-contract method is an accounting method of work-in-progress evaluation, for recording long-term contracts. GAAP allows another method of revenue recognition for long-term construction contracts, the percentage-of-completion method. With this method, revenue is recognized when the contract is fulfilled.

  5. Gross margin - Wikipedia

    en.wikipedia.org/wiki/Gross_margin

    Gross margin is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage . Generally, it is calculated as the selling price of an item, less the cost of goods sold (e.g., production or acquisition costs, not including indirect fixed costs like office expenses, rent, or ...

  6. Cost-plus contract - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_contract

    Cost-plus contract. A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, plus additional payment to allow for a profit. [ 1] Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred ...

  7. List of business and finance abbreviations - Wikipedia

    en.wikipedia.org/wiki/List_of_business_and...

    GP – Gross Profit. GPO – Group purchasing organization. GRN – Goods Receipt Note. GRNI – Goods Receipt Not Invoiced. GSV – Gross Sales Value. GVC – Global value chain. GMROII – Gross Margin Return on Inventory Investment. G&A – General and Administration expense. expenditures related to the day-to-day operations of a business.

  8. Cost-plus-incentive fee - Wikipedia

    en.wikipedia.org/wiki/Cost-plus-incentive_fee

    The Final Price of the contract is expressed as follows: Final Price = Actual Cost + Final Fee. Note that if Contractor Share = 1, the contract is a Fixed Price Contract; if Contractor Share = 0, the contract is a cost plus fixed fee (CPFF) contract. [4] For example, assume a CPIF with: Target Cost = 1,000; Target Fee = 100

  9. Opportunity cost - Wikipedia

    en.wikipedia.org/wiki/Opportunity_cost

    For example, if you build a plane, it costs a lot of money, but when you build the 100th plane, the cost will be much lower. When building a new aircraft, the materials used may be more useful, so make as many aircraft as possible from as few materials as possible to increase the margin of profit. Marginal cost is abbreviated MC or MPC.

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