Fee Agreements

question 47

Multiple Choice

Fee agreements

• A) are never discussed by paralegals.
• B) are set by paralegals.
• C) are always based on billable hours.
• D) require the client's signature.

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Definitions:

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities they require.

First-stage Allocation

The initial process of assigning overhead costs to different departments or cost centers in a business based on relevant criteria.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a factory or plant for allocating overhead costs to products.