California IDEX Practice Exam

The charge that a client would see on an interior designer's invoice for professionals working hourly would be the...

1. Billing rate

2. Direct labor charge

3. Direct personnel expense

4. Net multiplier rate

The correct answer is: Billing rate

The correct choice refers to the billing rate, which is a standard term used in the industry to indicate the amount charged per hour for professional services rendered by the interior designer or their staff. This rate encompasses not only the direct compensation of the professionals working but also potentially other overhead costs associated with providing the service, such as administrative expenses, office space, and other business-related expenditures. While other terms like direct labor charge or direct personnel expense focus on the base pay or cost directly associated with the work being done, they don't account for the additional fees or markup that a client would see on an invoice. The net multiplier rate, on the other hand, is often used to calculate the total charge based on the billing rate in conjunction with indirect costs, but clients typically see the billing rate directly reflected in their charges.