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You are given the following environmental quality-related costs: Employee training Product design Supplier certification Process inspection Depreciation-pollution-control equipment Maintain pollution-control equipment Clean up polluted lake
You are given the following environmental quality-related costs: Employee training Product design Supplier certification Process inspection Depreciation-pollution-control equipment Maintain pollution-control equipment Clean up polluted lake Restore land after use Property damage claim $ 200,000 240,000 90,000 370,000 500,000 300,000 600,000 800,000 700,000 Required: 1. Prepare a cost-of-quality (COQ) report of environmental management 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. (Hint: Classify the pollution-control costs as internal failure costs, under the assumption that the process pollutes and that the pollution-control equipment used by the company controls the release of pollutants into the environment.) (Round your percentage answers to 1 decimal place.) Prevention costs: Appraisal costs: Internal failure costs: External failure costs: Cost-of-Quality (COQ) Report Amounts Subtotals % of Total Operating Cost % % % % Totals %
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