Which of these statements about direct insolvency costs is NOT true?
A) Direct insolvency costs include the hiring of additional accountants, lawyers, and consultants.
B) Direct insolvency costs are less than indirect costs.
C) Suppliers requiring cash on delivery forms part of a company's direct insolvency costs.
D) Negotiating with lenders may help a company reduce direct insolvency costs.

Question

Quizplus · Accepted Answer

Suppliers requiring cash on delivery is considered an indirect cost of insolvency, as it affects the company's operations and relationships rather than being a direct expense incurred during the insolvency process.

Which of These Statements About Direct Insolvency Costs Is NOT