oboloo Glossary

Cost Plus Management

oboloo Glossary

Cost Plus Management

Cost Plus Management is an approach to business operations that takes into account the cost of goods and services, plus a predetermined amount for overhead expenses and labor. This management style can be used to determine budget projections, bid fairness or cost effectiveness when acquiring supplies. It also takes into account any markups in order to ensure profit. It’s important to note that this method requires businesses to have an accurate estimate of what their costs are in order to prevent overspending or operating at a loss. With the use of cost plus management, businesses are able to better manage their costs while still earning sufficient profit margins.