Agency Cost

10/04/2012 ACCT 6003 say-so hail article Re: hypertext enchant protocol://www. stockweek.com/articles/2012-07-16/how-employees-abuse-their-corporate-cellphone-accounts I believe this article makes an excellent subject of mental representation appeals. The study shows that many large companies nonice substantial cost as they find it a extremity for their employees to stay committed via cell phone. Obviously the sh beholders (principals) can non be in charge of any aspect of daily activities and entrust on employees (agents) to conduct line of work on this level. This article pinpoints expenses link to the use of the cell phones by the employees and their abuse, whether intentional or unintentional. Agency be can be loosely defined as expenses incurred by agents that are not directly aligned with the business principles of the lodge. Connectivity and information sharing has retentive been proven to be of win to most companies. Ring tones and pension text services, however, are not likely to benefit the company except in the rarest of instances.

Although these expenditures are of a small marrow, they deliver a good typesetters case of agency costs. However, these costs are greater than the dollar amount in the article. The article mentions grownup sites, ringtones and overages that could easily result in lost productivity period on the payroll. Obviously paid an employee overtime to surf SexyCougar and MobileLove is not how shareholders expect their investment dollars to be used. However, before any nonindulgent measures could be taken, opportunity costs would have to be weighed. Restrictions on the phones could limit productivity to a point that would outweigh the cost of pay! ing the current costs.If you penury to get a unspoiled essay, order it on our website: OrderEssay.net

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