cost plus method definition
cost plus method means a transfer pricing method using the costs incurred by the supplier of property (or services) in a controlled transaction; an appropriate mark-up is added to these costs, to make an appropriate profit in light of the functions performed (taking into account assets used and risks assumed) and the market conditions; the price, after adding the mark-up to the proper cost base, may be regarded as an arm’s length price of the original controlled transaction;
cost plus method means a method in which the mark up on the costs directly and indirectly incurred in the supply of goods, property or services in a controlled transaction is compared with the mark up on those costs directly or indirectly incurred in the supply of goods, property or services in a comparable uncontrolled transaction;
cost plus method means the transfer pricing method under which the mark up on the costs directly and indirectly incurred in the supply of property or services in a controlled transaction is compared with the mark up on those
More Definitions of cost plus method
cost plus method means the actual, reasonable increased or decreased direct cost of performing the change, plus mark-ups added to the actual extra material and labor costs The “Customer” is the customer, also at times referred to as “Owner”, who benefits from the Work.
cost plus method means the regulated pricing method described in regulation 10(6);
cost plus method means the regulated pricing method described in regulation 10(6); “original contract price” has the meaning given in paragraph 1(2);
cost plus method means determining the terms and price of controlled transaction by comparing its gross profit margin to the gross profit margin of a comparable independent transaction;