VARIATIONS IN PROFITS
AUSTRALIAN " COSTE-PLUS " SYDNEY, March 28. Profits varying from 3J3 per cent to S per cent on capital can be earned by different companies doing exactly -similar work under standard defence contracts. The Department of Munitions has. developed a set of "standard conditions applicable to contracts on. a cost-plus profit bilis," which eliminate many of the anomalies of former cost-plus contracts. The usual basis has been, to allow a profit of 7i per cent for "direct labour costs and 2i per cent for "direct material costs." The differences arise from the capital structure of different companies— •some own their own plant and buildings, others rent them, and in some instances there are bank overdrafts to be taken into consideration. These variations have led to wide fluctuations in allowable costs and earnings as between one company and another doing identical work.
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Auckland Star, Volume LXXIV, Issue 74, 29 March 1943, Page 5
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142VARIATIONS IN PROFITS Auckland Star, Volume LXXIV, Issue 74, 29 March 1943, Page 5
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