What method utilizes charges based on hourly, daily, or monthly rates?

The method that utilizes charges based on hourly, daily, or monthly rates is centered around the concept of billing clients based on the actual time spent on a project or service. This approach allows for flexibility and can adapt to the specific needs and timeline of a project. When professionals bill by the hour or on a daily or monthly basis, they can account for the varying complexities and durations of tasks, ensuring that clients pay for the time invested by the professional.

In a time-based billing method, the cost reflects the labor and expertise required to complete a task, making it a clear and transparent way for clients to understand how charges are accumulated over time. This method is particularly favored in industries where the amount of work can fluctuate significantly, and it aligns the incentives of the service provider with the effort expended.

The other methods mentioned, such as value-based pricing, lump sum or fixed fee, and unit cost method, involve different strategies that do not specifically rely on the duration of work as a basis for pricing, focusing instead on overall value, predetermined totals, or cost per unit, respectively.