Net multiplier is the ratio of the amount charged to the cost paid to the architect.

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Multiple Choice

Net multiplier is the ratio of the amount charged to the cost paid to the architect.

Explanation:
Net multiplier shows how much a firm charges clients relative to the cost of delivering the work with its staff. It is calculated as the amount charged to the client divided by the cost paid to the architect (usually the direct labor costs). This ratio captures the firm’s markup to cover overhead and profit on the labor it provides. In typical architectural practice, the net multiplier is about 3.0, meaning if direct labor costs are $100,000, the charges to the client would be around $300,000. The other options represent smaller or larger markups, but three is the standard benchmark given.

Net multiplier shows how much a firm charges clients relative to the cost of delivering the work with its staff. It is calculated as the amount charged to the client divided by the cost paid to the architect (usually the direct labor costs). This ratio captures the firm’s markup to cover overhead and profit on the labor it provides. In typical architectural practice, the net multiplier is about 3.0, meaning if direct labor costs are $100,000, the charges to the client would be around $300,000. The other options represent smaller or larger markups, but three is the standard benchmark given.

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