IBEC Inc. of Toronto spends approximately $2 million annually to hire auditors to go over the firm's financial statements. This is an example of an indirect agency cost.

Name: IBEC Inc. of Toronto spends approximately $2 million annually to hire auditors to go over the firm's financial statements. This is an example of an indirect agency cost.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

This is an example of a direct agency cost, as it is a direct expense incurred to ensure that management acts in the best interests of the shareholders.

IBEC Inc of Toronto Spends Approximately $2 Million Annually to Hire