Verde Company reported operating costs of $40,000,000 as of December 31, 20x5, with the following environmental...

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Accounting

Verde Company reported operating costs of $40,000,000 as ofDecember 31, 20x5, with the following environmental costs:
Testing for contamination $ 440,000
Inspecting products 760,000
Treating toxic waste 1,600,000
Obtaining ISO 14001 certification 880,000
Designing processes 720,000
Cleaning up oil spills 2,880,000
Maintaining pollution equipment 1,080,000
Cleaning up contaminated soil 4,120,000
Required:
1. Prepare an environmental cost report,classifying costs by quality category and expressing each as apercentage of total operating costs. Round percentages to twodecimal places, if rounding is required. For example, 5.79% wouldbe entered as "5.79".
Verde Company
Environmental Cost Report
For the Year Ended December 31, 20x5
Environmental Cost Total Environmental Cost Percentage of Operating Costs
Prevention costs:
$
$ %
Detection costs:
$
%
Internal failure costs:
$
%
External failure costs:
$
%
Total quality costs $ %
2. What if Verdedeliberately did not include the cost of damaging the ecosystembecause of solid waste disposal in its environmental cost report?What is the most likely reason?

Answer & Explanation Solved by verified expert

4.4 Ratings (944 Votes)

Environmental Cost A Total Environmental Cost B Percentage of Operating Costs B 40000000 Prevention costs Designing processes 720000 720000 180 Detection costs Testing for See Answer

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Testing for contamination	$ 440,000
Inspecting products	760,000
Treating toxic waste	1,600,000
Obtaining ISO 14001 certification	880,000
Designing processes	720,000
Cleaning up oil spills	2,880,000
Maintaining pollution equipment	1,080,000
Cleaning up contaminated soil	4,120,000

Verde Company
Environmental Cost Report
For the Year Ended December 31, 20x5
	Environmental Cost	Total Environmental Cost	Percentage of Operating Costs
Prevention costs:
	$
		$	%
Detection costs:
	$
			%
Internal failure costs:
	$
			%
External failure costs:
	$
			%
Total quality costs		$	%