Question

One way to limit agency costs is to separate the decision rights to initiate and implement decision (decision management) from the ratifying and monitoring functions (decision control). Accounting systems play a very important role in monitoring as part of the performance evaluation system." How can accountants and accounting systems limit agency costs and increase management accountability to shareholders?

Answer 1

1. Standardized Business Processes -Manage the business process such as breaks ,annual leave ,flexible working ,shifts.

2.Work Collaboratively- Have discussion with IT Support teams, HR department,Financial department

3.Up to Date- with the evolving tehnology and every day we see new systems and technologies being implemented , they can help cut down the cost and even restructure the employee agreements.

4.Support to Staff- engage with your staff will help in reducing the agency cost and losses

5. Competitors -Adapt process and get inspirarion from the competitors and try to adopt in your own management