1. A chemical company incurs environmental compliance costs: Pollution control $300,000, regulatory compliance $200,000, environmental audits $50,000, fines and penalties $100,000.
   • Requirements:
     • Classify environmental costs by type (prevention, detection, internal failure, external failure).
     • Calculate the cost of compliance as a percentage of total production costs.
     • Prepare an environmental cost management report.
     • Recommend strategies to reduce environmental costs and ensure regulatory compliance.
     • Discuss the ethical and financial implications of effective environmental cost management.