Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm. Which pricing method are they using?
A)cost-plus pricing
B)experience curve pricing
C)customary pricing
D)target pricing

Question

Quizplus · Accepted Answer

The pricing method being used by the lawyers and their clients is cost-plus pricing, as they are agreeing on a fixed fee that includes expected costs plus a profit for the law firm. This aligns with the definition of cost-plus pricing, which involves adding a markup to the total cost of producing a product or service in order to achieve a desired profit margin.

Rather Than Billing Clients by the Hour, Some Lawyers and Their