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    Agency Costs

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    Please help with the attached question.

    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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    https://brainmass.com/business/accounting/agency-costs-500304

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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 ...

    Solution Summary

    This solution explains which item can be more directly related to the management stewardship information in relation to reducing agency cost.

    $2.19

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