52) Which of the following statements about agency commissions is true? A) Most agencies are unwilling to negotiate their commission rates. B) Nearly all of the leading agencies still earn a 15 percent commission. C) Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion. D) Some leading agencies now receive average commissions of 8 to 10 percent. Answer: D 53) What form of compensation is used to pay the advertising agency when the client's advertising program does not involve a large amount of media billings? 54) Negotiated commission rates for advertising agencies: 55) Which of the following statements about changes in the way advertising agencies are being compensated is true? 56) A is a type of compensation arrangement where an agency charges a client a fixed monthly amount of money for all of its services and credits media commissions against this monthly rate. A) negotiated commission B) fixed fee agreement C) fee-commission combination D) cost-plus agreement Answer: C 57) Under the , the client agrees to pay the agency a fee based on the cost of its work plus some agreed-on profit margin.
58) Under the cost-plus compensation method, all of the following costs might be included in the calculation, EXCEPT:
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- Winter '18