Question

Harper & kane advertising agency sets an hourly rate for the services it provides to its clients. this rate is based on the average salary of all the members in the creative department. harper & kane uses the _____ system.

Answer 1

Harper & Kane use the fee system. A fee system is one of two billing methods used by advertising agencies. First there is the labor based fee system and then there is also the media commission system. The fee system happens when an agency bills for compensation for their work, the compensation is based on the number of hours worked on the project as well as the number of employees who were involved.