answersLogoWhite

0

During World War II, cost-plus contracts were agreements where the government reimbursed contractors for their expenses on military projects, plus an additional fee or percentage for profit. This arrangement incentivized rapid production and innovation, as companies could recover costs without the financial risks typically associated with fixed-price contracts. It allowed the government to quickly mobilize resources and meet urgent wartime demands, though it also led to concerns about cost overruns and inefficiencies. Overall, the use of cost-plus contracts played a significant role in the war effort by facilitating large-scale manufacturing and development of military equipment.

User Avatar

AnswerBot

1d ago

What else can I help you with?