Cost plus contract


 

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Cost plus contract

A contract in which the selling price is based on the total cost of production plus a fixed percentage or fixed amount.



Cost plus contract

Similar Matches

Cash settlement contracts

Cash settlement contracts

Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.


Nondeliverable Forward Contracts (NDF)

Nondeliverable Forward Contracts (NDF)

Agreement regarding a position in a specified currency, a specified exchange rate, and a specified future settlement date, that does not result in delivery of currencies. Rather one party in the agreement makes a payment to the other party on the basis of the exchange rate at the future date.


Open contracts

Open contracts

Contracts that have been bought or sold without completion of the transaction by subsequent sale or purchase, or by making or taking actual delivery of the financial instrument or physical commodity.


Contractionary

Contractionary

Tending to cause aggregate output (GDP) and/or the price level to fall. Term is typically applied to monetary policy (a decrease in the money supply or an increase in interest rates) and to fiscal policy (a decrease in government spending or a tax increase), but may also apply to other macroeconomic shocks. Contrasts expansionary.


Forward contract

Forward contract

A contract that specifies the price and quantity of an asset to be delivered on in the future. Forward contracts are not standardized and are not traded on organized exchanges


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