Under the _______,the client agrees to pay the agency a fee based on the cost of its work plus some agreed-on profit margin.

Question

Quizplus · Accepted Answer

In a cost-plus arrangement, the fee is based on the cost of the agency's work plus some agreed-on profit margin. This is different from a media commission system (B), where the agency earns a commission based on the amount of media that it places for the client, and an incentive-based system (C), where the fee is tied to performance metrics such as sales or brand awareness. A fee-combination arrangement (D) is not a commonly used term in the advertising industry.

Under the _______,The Client Agrees to Pay the Agency a Fee