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:

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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".

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:      
 
$- 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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