Which of these statements about direct bankruptcy costs is NOT true?
A) Direct bankruptcy costs include the hiring of additional accountants, lawyers, and consultants.
B) Direct bankruptcy costs are less than indirect bankruptcy costs.
C) Direct bankruptcy costs include payments to suppliers on delivery.
D) Direct bankruptcy costs can be reduced by negotiating with lenders.

Question

Quizplus · Accepted Answer

Direct bankruptcy costs refer to the explicit costs associated with the bankruptcy process, such as legal and administrative expenses, not the operational costs like payments to suppliers.

Which of These Statements About Direct Bankruptcy Costs Is NOT