Costs for Producing and Analysing Internal Performance Reports Are an Example

question 10

Multiple Choice

Costs for producing and analysing internal performance reports are an example of which type of agency costs?

• A) Goal alignment costs
• B) Losses from poor decisions
• C) Monitoring costs
• D) Contracting costs

---

Definitions:

Budgeted Costs

Estimated expenses for future periods, used for planning and controlling financial resources.

Idle Plant Assets

Fixed assets that are not currently in use for production, operations, or providing services, often due to reduced demand or operational changes.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, excluding investment and non-operational assets.

Controllable Margin

The portion of profit or income that can be directly controlled or influenced by management decisions.