Clint is an account supervisor at a public relations agency earning a salary of $65,000 a year, which breaks down to about $31.25 per hour. The client of the agency is billed $93.75 per hour, which is three times the account supervisor's actual pay. This is an example of the agency _____________.
A) Padding the bill
B) Applying the billable rate
C) Cheating the client
D) Applying fuzzy math

Question

Quizplus · Accepted Answer

The agency is applying the billable rate, which is a common practice in service industries where the client is charged a rate that is higher than the actual pay of the employee to cover overheads, agency profit, and other costs.

Clint Is an Account Supervisor at a Public Relations Agency