Employees at the jackson hole corporation typically take forty-five minutes for lunch when the allocated time is only thirty minutes. employees are encouraged to eat at the company cafeteria located in the middle of the company facilities. most employees choose to eat their lunch in the cafeteria. is there an agency cost here? if so, how can management eliminate or reduce this agency cost? what is the agency cost in this situation? a. the agency cost is the cost of the extra supervision required to insure the employees are not violating the length of the lunch break. b.the agency cost is the expense it takes to operate the cafeteria. c.the agency cost is the lost forty-five minutes of production time each day which the employees use to take their lunch. d.the agency cost is the lost fifteen minutes of employee production time each day.
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