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

Question

Quizplus · Accepted Answer

Cost-plus pricing involves setting a price based on the costs of production plus a fixed profit margin, which aligns with the description of a fixed fee based on expected costs plus profit.

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