CIPS Team Dynamics and Change L3M4 Question # 50 Topic 3 Discussion

CIPS Team Dynamics and Change L3M4 Question # 50 Topic 3 Discussion

L3M4 Exam Topic 3 Question 50 Discussion:
Question #: 50
Topic #: 3

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 taxes and profit


B.

Costs plus agreed profit


C.

Costs plus delivery and profit


D.

Costs plus overheads, profits, and taxes


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