nvironmental Cost Report Verde Company reported operating costs of $28,000,000 as of December 31, 20x5, with the following environmental costs: Testing for contamination $ 448,000 Inspecting products 448,000 Treating toxic waste 1,316,000 Obtaining ISO 14001 certification 476,000 Designing processes 448,000 Cleaning up oil spills 1,820,000 Maintaining pollution equipment 756,000 Cleaning up contaminated soil 3,024,000 Required: Question Content Area 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde CompanyEnvironmental Cost ReportFor the Year Ended December 31, 20x5 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: $- Select - - Select - $- Select - - Select -% Detection costs: $- Select - - Select - - Select - - Select -% Internal failure costs: $- Select - - Select - - Select - - Select -% External failure costs:
nvironmental Cost Report Verde Company reported operating costs of $28,000,000 as of December 31, 20x5, with the following environmental costs: Testing for contamination $ 448,000 Inspecting products 448,000 Treating toxic waste 1,316,000 Obtaining ISO 14001 certification 476,000 Designing processes 448,000 Cleaning up oil spills 1,820,000 Maintaining pollution equipment 756,000 Cleaning up contaminated soil 3,024,000 Required: Question Content Area 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde CompanyEnvironmental Cost ReportFor the Year Ended December 31, 20x5 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: $- Select - - Select - $- Select - - Select -% Detection costs: $- Select - - Select - - Select - - Select -% Internal failure costs: $- Select - - Select - - Select - - Select -% External failure costs:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 5CE: Verde Company reported operating costs of 50,000,000 as of December 31, 20x5, with the following...
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Question
Environmental Cost Report
Verde Company reported operating costs of $28,000,000 as of December 31, 20x5, with the following environmental costs:
| Testing for contamination | $ 448,000 |
| Inspecting products | 448,000 |
| Treating toxic waste | 1,316,000 |
| Obtaining ISO 14001 certification | 476,000 |
| Designing processes | 448,000 |
| Cleaning up oil spills | 1,820,000 |
| Maintaining pollution equipment | 756,000 |
| Cleaning up contaminated soil | 3,024,000 |
Required:
Question Content Area
1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79".
| Environmental Cost | Total Environmental Cost | Percentage of Operating Costs | |
| Prevention costs: | |||
|
|
$- Select - | ||
|
|
- Select - | $- Select - | - Select -% |
| Detection costs: | |||
|
|
$- Select - | ||
|
|
- Select - | - Select - | - Select -% |
| Internal failure costs: | |||
|
|
$- Select - | ||
|
|
- Select - | - Select - | - Select -% |
| External failure costs: | |||
|
|
$- Select - | ||
|
|
- Select - | - Select - | - Select -% |
| Total quality costs | $fill in the blank 1a616403f028feb_25 | fill in the blank 1a616403f028feb_26% |
Question Content Area
2. What if Verde deliberately did not include the cost of damaging the ecosystem because of solid waste disposal in its environmental cost report? What is the most likely reason?
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