A Method of Billing for Lawyers in Which a Fixed

question 64

Multiple Choice

A method of billing for lawyers in which a fixed amount is paid for a certain task is called:

• A) hourly fees.
• B) flat fees.
• C) retainers.
• D) contingency fees.

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Definitions:

Absorption Costing

An accounting method that captures all the manufacturing costs, including both fixed and variable costs, associated with producing a specific product.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of supervisors, and depreciation of factory equipment.

Variable Costing

An accounting method that includes only variable production costs--such as materials, labor, and overhead--in the cost of a unit of product.

Unit Product Cost

The total cost to produce one unit of a product, including materials, labor, and overhead.