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CL Ads, an Ad Agency, Provides Media Services for Its

Question 96

Multiple Choice

CL Ads, an ad agency, provides media services for its clients. It prepares and places ads in local and national magazines at a specified cost. However, the agency bills its clients a flat 15 percent of the ad cost as revenue. In this scenario, the agency is using a(n) _____ system.


A) incentive-based
B) flexible revenue
C) cost-plus
D) commission
E) fixed-fee

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