JP, your transponder need to be checked every 2 years and a logbook entry made. If you have not had this done, then the shop will want to pull the transponder and record the part number, model number, and serial number before the transmitter check.
For a VFR check, the test is quite simple and can be accomplished in about 30 minutes. The shop will verify the the altimeter and transponder are indicating the same value, +/- the tolerance allowed. This test is performed with the altimeter baro set to 29.92
An IFR test is a lot longer and also requires a static system check and altimeter test up to the max altitude the altimeter is certified.
The cost is usually a fixed price regardless of how long it takes. Additional cost may be incurred if problems are found and the shop has to fix something.