Cost Reimbursable contracts are equivalent to?

D. Cost plus contracts............................

cost re imbursment contract is, the buyer must reimburse the seller for legitimate costs associated with completing the work, plus a fee. The buyer and seller agree to a target cost upfront, and fees are calculated from that target cost. The three main types of cost-reimbursable contracts are

• Cost plus fixed fee

• Cost plus incentive fee

• Cost plus award fee

The answer is Option D i.e Cost plus contract.

Here "cost"in actual cost of labour, materials and services as agreed by buyer and contractor 

In addition "plus" means an agreed lump sum fee or a percentage of cost as profit or an agreed incentive fee.

thanks for the invitation ,in my opinion the answer is option D cost pus contract

D

However, now that you are asking this question, we might as well make the whole exercise more educational.

A cost-plus contract or cost reimbursement contract, is a contract where a contractor is paid for all of its allowed expenses plus agreed profit. In that sense it is opposite of fixed price contract in which the contractor is paid a negotiated amount regardless of expenses.

There are several types of cost-reimbursement contracts, all of which pay every agreed cost incurred by the contractor, plus a fee or profit which differs by contract type.

• Cost plus fixed-fee (CPFF) contracts pay a predetermined fee
• Cost plus incentive-fee (CPIF) contracts have a larger fee if contractor meets or exceeds performance targets (cost savings)
• Cost-plus-award fee (CPAF) contracts pay a fee based upon the contractor's work performance. In some contracts, the fee is determined subjectively by an awards fee board whereas in others the fee is based upon objective performance metrics.

Thanks for your invitation. My Reply -Option - D, Cost Plus Contracts.

Option D is my answer... 

I found the following at https://en.wikipedia.org/wiki/Cost-plus_contract

A cost-plus contract, also termed a cost reimbursement contract, is a contract where a contractor is paid for all of its allowed expenses to a set limit plus additional paymentto allow for a profit.[1] Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses.

D. Cost plus contracts

It`s paid to the contractor in exchange for the actual costs incurred in the implementation of the business, as well as additional fees.

D. Cost plus contracts

A cost reimbursable contract (sometimes called a cost plus contract) is one in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee.

Answer is:D. Cost plus contracts