Costs for producing and analysing internal performance reports are an example of which type of agency costs?
A) Losses from poor decisions
B) Monitoring costs
C) Goal alignment costs
D) Contracting costs

Question

Quizplus · Accepted Answer

Monitoring costs are expenses incurred to ensure that managers act in the best interest of the shareholders, which includes costs for producing and analyzing internal performance reports to monitor the company's operations and performance.

Costs for Producing and Analysing Internal Performance Reports Are an Example