Prepare a cost of environmental quality report for the year


Cost of Environmental Quality Report You are given the following environmental quality-related costs:

Employee training

$100,000

Product design

140,000

Supplier certification

40,000

Process inspection

320,000

Depreciation-pollution-control  equipment

400,000

Maintaining  pollution-control equipment

200,000

Cleaning up polluted lake

500,000

Restoring land after use

700,000

Property damage claim

600,000

Requried:

1. Prepare a cost of environmental quality report for the year. Determine subtotals for each of the four reporting categories and express each subtotal as a percentage of total operating expenses ($10,000,000) for the year.

2. Based on the report you prepare, what conclusions can you draw regarding the company's environmental quality performance for the year?

3. Can you offer management suggestions for the design of an effective cost of environmental quality reporting system? (That is, what would make for a good reporting system?)

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Cost Accounting: Prepare a cost of environmental quality report for the year
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