Chapter 14, Problem 21E

At the end of 20x5, Bing Pharmaceuticals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally related for the calendar year just ended:

Required:

1. 1. Prepare an environmental cost report by category. Assume that total operating costs are $150,000,000.
2. 2. Use a pie chart to illustrate the relative distribution percentages for each environmental cost category. Comment on what this distribution communicates to a manager.