Which pricing method in consulting is based on daily rates for labor provided?

The pricing method referred to in the question is daily rates, which is a common approach in consulting where clients are charged based on the number of days that consultants work on a project. This method provides a clear structure for billing, as clients know how much they will be paying for the consultant's time on a daily basis.

Using daily rates can offer advantages such as greater transparency and the ability to plan budgets more effectively, as both consultants and clients understand the costs associated with each day of work. Additionally, this method can accommodate varying levels of consultant engagement across different projects, allowing for flexibility in pricing as project demands change.

In contrast, hourly rates charge clients based on the actual time spent working, which can lead to uncertainty about costs if the project scope changes significantly. Flat fees establish a predetermined price for the entire project regardless of the time spent, which might not accurately reflect the actual labor involved. Outcome-based pricing connects fees to the results achieved rather than the time spent, which can be beneficial for aligning interests but may not suit all types of consulting engagements.

Therefore, the choice of daily rates as the correct answer highlights a specific pricing strategy focused on charging for days worked, making it distinct from the other methods mentioned.