Dictionary of Procurement Terms

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Search Results: 251-260 of 310 results for “C”
  • Cost Principle

    Regulatory principle used to determine the allowability of incurred costs for the purpose of reimbursement under the provisions of the contract.
  • Cost Realism

    A factor considered during cost analysis of a proposal to determine if the costs proposed are realistic in light of historical experience, costs on similar projects, market conditions over the life of the proposal, or other factors.
  • Cost Reduction

    A reduction generally realized when a manufacturer is able to lower the material or labor costs used to make its products; interchangeably used to indicate a lower price paid by the buyer from what was previously paid. See also: Cost Saving, Price Reduction.
  • Cost Saving

    A realized and measurable reduction in material, resource, or labor expense(s) associated with the production and delivery of an item or service. Primarily associated in the manufacturing of an item; interchangeably used to indicate a lower price paid by the buyer from what was previously paid. See also: Price Reduction, Cost Reduction.
  • Cost Sharing

    A type of contract that is used when it is impossible to firmly estimate costs and there is a high probability that the contractor will receive a substantial current or future commercial benefit. This type of contract may be used in research and development areas, as well as public-private partnerships.
  • Cost, Insurance, Freight (c.i.f.)

    A quoted price that includes marine insurance in addition to the cost of the item and transportation charges to destination; commonly used when shipping via ocean freight.
  • Cost, Original

    The original cost for which a good or service was acquired; for equipment purchases, this may include shipping, installation, and other associated costs.
  • Cost-Based Pricing

    A method in which a fixed sum or percentage of the total cost is added as an income or profit to the cost of the product to arrive at its selling price.
  • Cost-Benefit Analysis (Study)

    A process that adds up the benefits of an action, good, or situation and then subtracts the associated costs. The resulting figure is used as a comparison for alternatives to determine if the cost is a better value or benefit to the entity.
  • Cost-of-Living Adjustment (COLA)

    An increase in price or benefits to counteract inflation as determined by a standard, pre-agreed-upon index.
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