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The residual value of "cost plus" is whatever is charged which exceeds the cost.

Example:

I provide a quote the terms for a project as being "cost plus 20%".

If the cost for my project is $100, then I would bill $120.

The residual value is $20.

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15y ago
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7mo ago

Cost plus residual value is a method used to evaluate the worth of an asset based on both its original cost and its expected residual value at the end of its useful life. The residual value is the estimated value an asset will have at the end of its useful life, which is then added to the original cost to determine the total value or worth of the asset.

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Q: What is cost plus residual value?
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Related questions

Formula for depreciable cost?

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