Below is a list of categories for sustainability costs (Exhibit 17.9).
Level 1 – Conventional costs
Level 2 – Hidden costs
Level 3 – Contingent costs
Level 4 – Image and relationship costs
Level 5 – Externalities

REQUIRED
Classify each sustainability cost A-Q according to its appropriate category (Level 1, 2, 3, 4, or 5).
Assume that each cost was incurred during the current year unless stated otherwise.
A. Cleanup costs from a chemical accident
B. Costs of a community relations program
C. Fees to obtain licensing permits for a new production process
D. Dismantle and dispose of equipment to close a facility
E. Disposal of production waste
F. Design of environmental product labeling
G. Feasibility studies regarding a new process that will reduce hazardous waste
H. Future compliance costs related to new government regulations
I. Habitat and wetland protection
J. Landscaping around factory site
K. New manufacturing equipment costs
L. Employee injury medical costs
M. Raw materials for manufacturing
N. Clean up long-term environmental damage at a mining location
O. Site studies to develop more rigorous pollution control
P. Legal expenses for a lawsuit claiming workplace gender bias
Q. Development of sustainability reports