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)target pricing
B)cost-plus pricing
C)customary pricing
D)experience curve pricing

Question

Quizplus · Accepted Answer

The lawyers and clients are using cost-plus pricing method where they agree on a fixed fee based on expected costs plus a profit for the law firm. This means that the law firm takes into account all the costs associated with the case, including time spent by lawyers and other staff, and adds a profit margin on top of it to determine the fixed fee. This method is different from hourly billing, where clients are charged for the exact amount of time spent on the case. Cost-plus pricing ensures that both the law firm and the client have a clear understanding of the costs involved and the fee charged.

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