The reduction in profit arising from the actions of managers being self-serving or possible conflict of interest can best be attributed to............. • A. Agency cost • B. Tangible expense • C. Agency theory • D. Agency problem

The reduction in profit arising from the actions of managers being self-serving or possible conflict of interest can best be attributed to............. • A. Agency cost • B. Tangible expense • C. Agency theory • D. Agency problem

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 12MC: A responsibility center in which managers are held accountable for both revenues and expenses is...

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Question

The reduction in profit arising from the actions of managers being self-serving or possible conflict of
interest can best be attributed to.…........….…..
• A. Agency cost
• B. Tangible expense
• C. Agency theory
• D. Agency problem

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