Residual loss, as an agency cost, refers to: ...
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Accounting
Residual loss, as an agency cost, refers to:
| the costs incurred by the agent when implementing assurances that they are acting in the principals best interests. | ||
| the costs incurred by the principal in observing, evaluating and controlling the agents behaviour. | ||
| the amount by which the marginal cost is less than the expected benefit of additional monitoring and bonding. | ||
| the amount by which the marginal cost exceeds the expected benefit of additional monitoring and bonding. |
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