Employee training $ 220,000 Product design 260,000 ...
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Accounting
Employee training
$
220,000
Product design
260,000
Supplier certification
100,000
Process inspection
380,000
Depreciationpollution-control equipment
520,000
Maintain pollution-control equipment
320,000
Clean up polluted lake
620,000
Restore land after use
820,000
Property damage claim
720,000
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.)
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