Division managers are padding cost estimates so as to show$$ short$-$term efficiency gains when the costs come in lower than the estimates. Which of the following statements correctly identifies the cost and possible solution for the agency problem in this$$ case?$($Choose all correct$$ responses.$)$

A$.$

One agency cost is that money budgeted to cover the project proposal is not available to fund other projects that may help to increase shareholder wealth.

B$.$

There is no agency cost in this problem.

C$.$

One way to reduce the agency cost is to base the reward system on how close the$$ employee's estimates come to the actual cost rather than having them come in below cost.

D$.$

A reward system based on increasing shareholder wealth might motivate the division managers to make more accurate estimates in order to be able to take on additional profitable projects.