Advantages of Full Cost Plus Pricing

Advantages of Full cost plus pricing

1.    All cost are covered

Under full cost pricing all cost are covered and therefore there is no loss condition.

2.    Profit is known

In full cost pricing the profit is known from the project. Therefore there is no uncertainty about the profitability; therefore organization can focus on project.

3.    Quality Good

In full cost pricing there is more focus on quality, because cost is to be charged to customer in full cost pricing method.