Environmental Cost Report

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:

	20x5
Settling personal injury claims	$3,000,000
Treating and disposing of toxic waste	12,000,000
Cleanup of chemically contaminated soil	4,500,000
Inspecting products and processes	1,500,000
Operating pollution control equipment	2,100,000
Licensing facilities for producing contaminants	900,000
Evaluating and selecting suppliers	300,000
Developing performance measures	150,000
Recycling products	187,500

Required:

Question Content Area

1. Prepare an environmental cost report by category. Assume that total operating costs are $150,000,000. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79".

Bing Pharmaceuticals Environmental Cost Report For the Year Ended December 31, 20x5

	Environmental Costs	Total	Percentage of Operating Costs
Prevention costs:
Cleanup of soilDeveloping performance measuresEvaluating/selecting suppliersInspecting products/processesLicensing facilitiesOperating equipmentSettling claimsTreating/disposing toxic waste	$- Select -
Cleanup of soilDeveloping performance measuresInspecting products/processesLicensing facilitiesOperating equipmentRecycling productsSettling claimsTreating/disposing toxic waste	- Select -	$- Select -	- Select -%
Detection costs:
Cleanup of soilEvaluating/selecting suppliersInspecting products/processesLicensing facilitiesOperating equipmentRecycling productsSettling claimsTreating/disposing toxic waste	$- Select -
Cleanup of soilDeveloping performance measuresEvaluating/selecting suppliersLicensing facilitiesOperating equipmentRecycling productsSettling claimsTreating/disposing toxic waste	- Select -	- Select -	- Select -%
Internal failure costs:
Cleanup of soilDeveloping performance measuresEvaluating/selecting suppliersInspecting products/processesRecycling productsSettling claimsTreating/disposing toxic waste	$- Select -
Cleanup of soilDeveloping performance measuresEvaluating/selecting suppliersInspecting products/processesOperating equipmentRecycling productsSettling claims	- Select -
Cleanup of soilDeveloping performance measuresEvaluating/selecting suppliersInspecting products/processesLicensing facilitiesRecycling productsSettling claims	- Select -	- Select -	- Select -%
External failure costs:
Developing performance measuresEvaluating/selecting suppliersInspecting products/processesLicensing facilitiesOperating equipmentRecycling productsSettling claimsTreating/disposing toxic waste	$- Select -
Cleanup of soilDeveloping performance measuresEvaluating/selecting suppliersInspecting products/processesLicensing facilitiesOperating equipmentRecycling productsTreating/disposing toxic waste	- Select -	- Select -	- Select -%
Total quality costs		$fill in the blank 9a7c3dffd03e03c_27	fill in the blank 9a7c3dffd03e03c_28%

Question Content Area

2. Select the pie chart that illustrates the relative distribution percentages for each environmental cost category.

a.		b.
c.		d.

The correct answer is

abcd

.