Agency Costs
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To reduce agency cost, accounting should provide the information for management stewardship. Then, which item can be more directly related to the management stewardship information?
A) goodwill impairment loss
B) projected benefit obligation
C) employee stock option expense
D) gain from asset exchange.
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Solution Summary
This solution explains which item can be more directly related to the management stewardship information in relation to reducing agency cost.
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C) employee stock option expense
When we deal with agency costs, we're looking at costs that result from management acting on behalf of the principal, which can be seen as the owners of the company. The main problem with agency costs is that there are always conflicts between what management ...
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